Is Real Estate in Metro Manila Becoming Unaffordable for the Middle Class?

Why Middle-Class Filipinos Struggle to Buy Homes in NCR?

In 2025, real estate in Metro Manila remains out of reach for many middle-class Filipinos. Affordability becomes an issue due to a lot of factors that drive prices. Good news is that, there are alternatives homebuyers can explore to achieve their dream home. Read on to discover why more middle-class families are realizing that the price of owning a home in the National Capital Region has become nearly impossible to achieve these days.

Living the Manila Dream

Manila is a dream location for many Filipinos, and we all know why. It’s close to work, schools, and business districts. However, the Manila dream has become elusive for the middle class – let’s say a family with a combined monthly income of PHP 75,000 to PHP 100,000. Despite this salary, many still cannot afford a modest townhouse or condominium in NCR. Townhouses now range from PHP 7M to PHP 10M, while a 2BR preselling condo can cost up to PHP 6M to PHP 7M.

Why Homes in NCR Are Getting More Expensive?​

There are several factors contributing to the rising prices of condos, townhouses, and house-and-lot units in the metro. Here they are:

• Investment buying. Many properties are purchased not for living purposes, but for investment. As a result, prices keep going up even when units remain empty.
  
  
• OFW purchasing power. Overseas Filipino Workers unintentionally price out local homebuyers with their stronger foreign income. Therefore, remittances fuel demand in prime locations in NCR.
  

​

• ​Limited land supply. Metro Manila is a small, highly urbanized region. With limited land left for development, prices naturally skyrocket.

Rent vs Buy Dilemma

Renting has become the default option for the middle-class pinoys even with 6-digit income. Imagine setting aside almost PHP 100,000 a month just for housing costs even if you don’t have kids yet. Some Filipinos delay home ownership until they have the money for down payment. But of course, this feels like chasing a moving target because property prices continue to increase. This cycle traps the middle class into long-term renting, with a small chance to build equity in their own property.

Where to Find Affordable Homes Outside NCR

Given Metro Manila’s current housing market, you can shift your focus outside the capital for less expensive properties. Here are some good locations where you can look for affordable home and even condos:

• Baguio City. Affordable condo units in Baguio with natural views and better climate.
  
  
• Laguna. Subdivisions that are budget-friendly for families who want to stay connected to Metro Manila.
  
  
• Cavite. Starter homes can still be found for PHP 3M to PHP 4M, with more space and access to upcoming infrastructure projects.

Final Thoughts

The harsh reality of Metro Manila properties becoming unaffordable for average Filipinos is here, accept it or not. With investment buying and limited land, the gap between income and property prices continues to widen. The best thing you can do is explore other areas where properties are within your reach, such as the newest condominiums in Baguio City. Exploring alternatives outside NCR is the best option. Visit REALS.PH website for the most affordable homes and lot properties in the Philippines.