Guatemala’s poverty is rooted in many social, economic and political factors, manifested by 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 statistics are consistent with the results of research published by the Guatemalan government in 2005.

In addition to the already existing shortage of houses, hurricanes and tropical storms cause great damage and make a large numbers of people house and homeless. Hurricane Stan caused a lot of damage in October 2005, and in late May 2010 tropical Storm Agatha hit Guatemala hard, destroying thousands of homes due to mudslides caused by excessive rain.

Most of the population living in poverty resides in make-shift housing made of corn stalk walls, dirt floors, and roofs comprised of residual materials (cardboard and plastics) and corrugated iron or wood. It is common for a house to consist of only one room in which many people live, cook and sleep. Cooking inside on the floor in a poorly ventilated room leads to multiple health problems including asthma, poor hygiene and burns. In addition, there is no room for children to do work and no privacy within the home, which often leads to interfamily conflict. During the season of heavy rains, problems of poor drainage and mud further complicate the housing situation, compromising the health and the ability to survive of families.