Guatemala’s poverty is rooted in many social, economic and political factors, manifested by their high illiteracy, poor health and extremely inadequate housing.

According to a report from the COHRE (Centre on Housing Rights and Evictions) in 2003, more than half of the population lives in non-suitable 'houses', coupled with a shortage of approximately 1.5 million houses. These data are consistent with the results of research published by the Guatemala government in 2005.

In addition to the already existing shortage of houses, hurricane Stan caused a lot of damage to the country in October 2005 and made a large number of people house and homeless. In the area of housing, Guatemala still has not fully recovered.

Most of the population living in poverty resides in make-shift housing made of corn stalk walls, dirt floors, and roof shelters comprised of garbage materials (cardboard and plastics) and corrugated iron or wood. It is common for a house to consist of only one room in which people live, cook and sleep. During the season of heavy rains, problems of poor drainage and mud further complicate the housing situation, compromising the health and survivability of families.