The cost of living in Peru has risen dramatically in recent years, putting basic needs like food, healthcare, and housing out of reach for millions of people. While economic growth brought progress for some in the past decades, it hasn’t been evenly distributed. In 2023, Peru’s poverty rate reached 29%, with approximately 9.8 million people now classified as living in poverty. For many, the dream of owning or renting safe housing is overshadowed by daily struggles to meet the cost of living.

The Realities of Rising Costs
The cost of living in Peru is heavily influenced by urbanization, inflation, and wage stagnation. In cities like Lima, rising housing demand has driven up rental prices, while many families earn wages that barely cover their basic needs. In rural areas, poverty rates are even higher—approximately 40%—as communities rely on agriculture and informal jobs that often pay below the poverty threshold of 415 soles ($109) per person per month.
Inflation has further exacerbated the issue. Essential items such as food and utilities consume a disproportionate share of household budgets, leaving little to cover rent or home improvements. As a result, families are forced to live in precarious conditions, often in poorly constructed dwellings that lack stability, safety, and basic amenities.

Life in the Slums of Lima, Peru
Urban migration plays a significant role in the housing crisis. Thousands of families leave rural areas each year in search of better job opportunities in cities, only to find themselves in the slums of Lima, Peru or similar informal settlements. These communities, known locally as “pueblos jóvenes,” are sprawling areas of self-built homes made from fragile materials like wood, tarps, and tin.
These settlements are located on the outskirts of cities, often on steep hillsides or flood-prone zones, making them particularly vulnerable to natural disasters. Basic infrastructure, such as clean water, sewage systems, and stable electricity, is often nonexistent. Many children living in these areas lack access to adequate schooling, while adults face limited job opportunities due to geographic isolation and societal marginalization.
Residents of the slums are trapped in a cycle of poverty: without stable housing, it becomes harder to pursue education, maintain health, and find steady employment. Despite their efforts to improve their situation, the cost of living in Peru creates insurmountable barriers for many families.

The Link Between Housing and Well-Being
The effects of inadequate housing go beyond the physical structure of a home. Unsafe or overcrowded housing has long-term consequences for health, education, and economic stability. For instance:
- Health Risks: Poor sanitation and lack of access to clean water in informal settlements increase the prevalence of diseases such as diarrhea, respiratory infections, and waterborne illnesses. These health issues disproportionately affect children and the elderly.
- Education Barriers: Without stable housing, children are less likely to attend school regularly. Frequent relocations or poor conditions at home can impede their ability to focus on education, limiting their future opportunities.
- Economic Impact: Families living in substandard housing often face higher costs in the long run, such as repairing unsafe structures or dealing with medical bills caused by health issues linked to their living conditions.
Safe housing addresses these challenges, providing a stable foundation for families to thrive. Secure homes offer not just shelter but also a sense of dignity, community, and opportunity.
What Can Be Done?
The scarcity of safe housing in Peru requires urgent action on multiple fronts. Here are some strategies that could help break the cycle of poverty:
- Policy Interventions: Governments must prioritize affordable housing programs and regulate land use to ensure that safe homes are accessible to all income levels.
- Community-Led Development: Empowering communities to participate in housing initiatives ensures that solutions are tailored to local needs.
- Public and Private Partnerships: Collaboration between governments, non-profits, and private companies can increase the scale and impact of safe housing projects.
- Global Awareness and Support: Raising awareness about the housing crisis in Peru can mobilize international resources and support for initiatives like the Safe Homes Movement.
If you want to make a difference, consider supporting organizations that work directly with vulnerable populations. Your contribution can help build not just homes, but also opportunities for a better life.

Breaking the Cycle of Poverty
The housing crisis in Peru is a stark reminder of the challenges faced by millions in developing countries. Without action, the gap between the rising cost of living in Peru and the ability of families to afford housing will continue to widen. By building safe homes, empowering communities, and advocating for change, we can help break the cycle of poverty that traps so many families.
The Safe Homes Movement: Building Hope
Organizations like the Safe Homes Movement are making significant strides in addressing the housing crisis in Peru. By constructing durable, affordable homes, they provide families with more than just a place to live—they offer stability and hope for a better future.
The focus of these initiatives is not just to build houses but to create sustainable communities. Homes are designed to be resilient to the harsh conditions of informal settlements, such as flooding and earthquakes. Projects also aim to empower local residents by providing training and jobs in construction, ensuring that communities have the skills and resources to maintain and expand their homes.
Safe housing projects are not a luxury; they are a necessity. By addressing housing insecurity, we tackle one of the root causes of poverty and lay the groundwork for healthier, more prosperous communities.
Housing is the foundation for a brighter future. Join us in addressing the housing crisis in Peru and creating communities where everyone has the opportunity to thrive.
For more information about how you can get involved, please read the Safe Homes Brochure.