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The Housing Problem in the Middle of the Pyramid
Published online by Cambridge University Press: 16 February 2021
Traditional housing markets have primarily ignored both the Bottom of the Pyramid (BOP) and the Middle of the Pyramid (MOP), as these groups are expelled out from commercial banking given they have insufficient money to formally build their homes, so they remain as vulnerable people. This housing shortage is of particular importance in developing countries where public intervention is not efficient to solve this social problem. In this chapter, and applied to the Latin American and the Caribbean (LAC) nations, we show how the public–private initiatives based on innovation can help to solve this shortage of quality housing. We conclude that managers located in LAC countries have an active role in identifying social needs to satisfy them by applying innovative processes focused on reducing poverty gaps in housing from private initiatives. These creative procedures allow social entrepreneurs to adopt flexible and adjustable models to the variety of needs emerged in the different segments of the low-income market, and we show it in various cases for some LAC countries.
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