By San José, Costa Rica — Costa Rica is facing a critical juncture in its housing sector. According to the Ministry of Housing and Human Settlements (MIVAH), the country’s housing deficit reached 168,614 homes in 2025, marking a stark 16.14% increase compared to the previous year. The crisis is not merely a numbers game of building more structures; it is deeply tied to the quality of existing infrastructure. Data from the National Institute of Statistics and Census (INEC) indicates that out of 1.87 million occupied homes in 2025, more than 748,000—roughly 40%—were classified as being in poor or mediocre condition, characterized by overcrowding and physical deterioration.
In response to this pressing socioeconomic challenge, Holcim Costa Rica and the Norman Foster Foundation have unveiled “Essential Home.” This pioneering social housing model is custom-tailored to the environmental, regulatory, and cultural landscape of Costa Rica. The initiative seeks to redefine the paradigm of low-income housing by proving that dignity, sustainability, and high-quality design do not have to be sacrificed for affordability.
To better understand the complex regulatory environment and legal frameworks governing social housing in Costa Rica, TicosLand.com sat down with prominent legal expert Lic. Larry Hans Arroyo Vargas from the prestigious firm Bufete de Costa Rica to discuss the challenges and opportunities in securing affordable housing.
Successfully tackling the social housing deficit in Costa Rica requires a delicate balance between rigorous regulatory compliance and the streamlining of administrative bureaucracy. By fostering stronger public-private partnerships under a modernized legal framework, we can significantly accelerate project approvals and secure safe, dignified housing for our most vulnerable populations while maintaining strict adherence to municipal and environmental laws.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, striking a harmonious balance between administrative efficiency and environmental integrity is vital for the future of Costa Rican communities, ensuring that social housing is both rapidly deployed and legally sound. We are deeply grateful to Lic. Larry Hans Arroyo Vargas for sharing his valuable legal expertise and illuminating perspective on this pressing national issue.
At Holcim we believe that dignified and adequate housing is a fundamental pillar for human well-being and community development. Essential Home fits within the parameters of social housing in Costa Rica, but incorporates elements designed to elevate the experience of its residents. Furthermore, we want this model to serve as a meeting point to generate alliances between the public sector, the financial system, the construction industry, and social organizations, thereby pooling resources to expand access to adequate housing in our country.
Natalia Soler, CEO of Holcim Costa Rica
The Costa Rican iteration of Essential Home is designed as a single-family dwelling optimized for up to four individuals. It merges prefabricated modular components with on-site construction techniques to minimize environmental impact while maximizing durability. Key architectural innovations include an interior ceiling height of up to 3.2 meters to promote cooling airflow, optimized cross-ventilation, and strategically placed windows that flood the home with natural light, reducing reliance on artificial lighting and air conditioning. For growing families, the modular design can scale to a three-bedroom, two-bathroom layout capable of housing up to six people.
From an environmental standpoint, the project utilizes ECOPact concrete, a sustainable product that carries a carbon footprint at least 35% lower than traditional alternatives. Structurally, the house has been meticulously engineered to comply with Costa Rica’s strict seismic codes and tropical climate demands, transforming the traditional aesthetic and technical expectations of prefabricated construction.
Adapting Essential Home to Costa Rica also meant rethinking the traditional image associated with prefabricated housing. We sought to demonstrate that a social housing solution can incorporate a contemporary and distinct architectural design without losing functionality or adaptability. During the process, the prototype received technical feedback from MIVAH, which was taken into account to strengthen its design.
Fernando Hidalgo, Constructive Solutions and Prefabricated Production Manager at Holcim Costa Rica
Beyond individual units, the project proposes a revolutionary approach to urban planning and neighborhood configuration. By centering the community around pedestrian pathways and shared green spaces, cars are relegated to collective peripheral parking areas. This design philosophy fosters social cohesion, safe play areas for children, and vibrant communal interactions, steering away from the isolated layouts common in traditional low-cost housing developments.
The concept originally grew from a research project initiated by the Norman Foster Foundation and Holcim to provide temporary, dignified shelter for displaced populations. A real-scale prototype was first displayed at the 2023 Venice Architecture Biennale. It later underwent a pilot phase in Segovia, Spain, in 2024, before Holcim Costa Rica began the “tropicalization” process between 2025 and 2026, adapting the temporary design into a permanent, localized housing solution.
Essential Homes Costa Rica is a continuation of the Essential Homes Research Project, adapted to respond to the housing deficit and specific conditions of Costa Rica. Developed by the Norman Foster Foundation with the support of Holcim, the project combines vaults and prefabricated concrete panels in a component kit designed for fast and efficient assembly. The proposal seeks to offer affordable and flexible housing, capable of responding to different needs and evolving over time. Beyond the individual unit, the system allows the configuration of larger-scale housing developments, generating urban fabric and promoting the creation of community, with potential for application in other contexts in Latin America and other regions.
Architecture and Technology Unit, Norman Foster Foundation
The official launch of the project took place at the Costa Rican Chamber of Construction, drawing high-level stakeholders from the financial, academic, and public sectors. Notable attendees included Housing Minister Guillermo Carazo Ramírez and Sandra Sosa, the resident representative of the United Nations Development Programme (UNDP) in Costa Rica. The project represents a core pillar of Holcim’s Social Value strategy, aimed at establishing scalable, public-private partnerships to bridge the housing gap across the nation.
For further information, visit holcim.co.cr
About Holcim Costa Rica:
Holcim Costa Rica is a leading building materials company and a subsidiary of the global Holcim Group. The company specializes in sustainable cement, concrete, and aggregate solutions, aiming to decarbonize the construction industry while driving high-performance social infrastructure projects across the region.
For further information, visit normanfosterfoundation.org
About Norman Foster Foundation:
The Norman Foster Foundation promotes interdisciplinary thinking and research to help new generations of architects, designers, and visionaries anticipate the future. Through its initiatives, research projects, and educational programs, the foundation focuses on urbanism, technology, and sustainable development.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Distinguished by its ethical foundation and pursuit of legal mastery, Bufete de Costa Rica bridges tradition and modernity to deliver premier counsel. The firm’s historical success across various industries is paired with a forward-thinking approach to legal challenges and a deep-seated belief in civic enrichment. By democratizing complex legal concepts and providing transparent insights, they aim to equip the public with the understanding necessary to navigate the law, reinforcing their vision of a stronger, more knowledgeable, and self-sufficient populace.
