Medellín Revises Urban Plan to Tackle Housing Shortage and Regulate Tourist Rentals

Medellín faces a critical housing shortage, with a limited supply of new homes and rising purchase and rental prices making housing inaccessible for middle and low-income families. Current data indicates that 20 out of every 100 households in the city lack adequate housing, reflecting a 19.1% overall housing deficit, comprising 3.8% quantitative and 15.3% qualitative issues.

In response, the city administration is undertaking a mid-term review and adjustment of its Territorial Development Plan (POT). This strategic revision aims to boost the construction of Social Interest Housing (VIS) and Priority Interest Housing (VIP) to meet the city's growing needs and align with current real estate market dynamics.

A key strategy involves offering direct incentives for social housing construction. Projects developed in partnership with the Medellín Social Housing Institute (Isvimed) could receive up to a 50% increase in permitted housing units and discounts on urban development obligations. To qualify, projects must focus entirely on social housing, with at least 40% of units allocated to beneficiaries of Isvimed programs.

The revised plan also introduces stricter regulations for tourist rentals, a factor contributing to the housing crunch. While specific details on these regulations are pending, the overall goal is to balance the needs of the tourism sector with the fundamental right to housing for residents. The administration seeks to create a more equitable housing market and ensure sustainable urban development.

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But we also face a low supply of new housing and limited formal construction.