The rental market in informal neighborhoods in Bogota, a structural market

Abstract

This article sets forth interpretation elements to understand the role of the rental market in informal neighborhoods in Bogota and to offer paths towards urban policies. It attemptsto answer the question: Why, in view of the important role of land property and the high cost of rent, do important sections of popular sectors of Bogota decide to rent out at high costpart or all of a property in the informal market rather than buy it? Residential tenant strategies are analyzed by the relationship between work market and residential market, location value in residential decisions, and residential mobility. The analysis suggests that residential decisionsare territorialized. It is argued that in informal settlements, endogenous factors such as social networks, which defi ne local socio–economic relations, help in understanding the elevated demand in this market. It is shown, however, that tenants aspire to be owners, leading to the fact that social benefi t housing is a solution valued by a low proportion of tenants. In conclusion, various guidelines for housing policy are pointed out, which, in coordination with instruments of land management, might contribute in confronting informal urbanization.