Building Capital: The Role of Migrant Remittances in Housing Improvement and Construction in El Salvador
This presentation examines the connection between remittances and housing. It also provides empirical evidence of the role of remittances in housing production in El Salvador.
El Salvador receives remittances of about $3.7 billion from the U.S. annually. A large part of the Salvadoran population lives in sub-standard housing conditions. National statistics indicate that a small percentage of remittances are used for housing, while existing literature does not refer to it specifically. The current study conducted a survey of 100 randomly selected households in the San Jeronimo area. Findings indicate that:
- Remittance-receiving households have houses that are much better built and furnished;
- Remittance-receiving households are more likely to make improvements to their houses, purchase land and hire labor;
- Remittances have been used extensively for housing, and is one of the primary forms of capital for housing improvements and construction;
- Remittances have been integrated into and sometimes enhanced an informal system of housing production.
The study demonstrates that remittance spending on housing is producing real benefits and expanding shelter options for remittance-receiving households in El Salvador.
