The Housing Crisis in Jamaica
August 25, 2025
Diamond A. Buchanan | DasBuchanan@outlook.com
I both believe and do not believe that there is a housing crisis in Jamaica. There is a constant sentiment from both prominent parties, the Jamaica Labour Party and the People’s National Party, to build more houses in the country and magically the housing problem will go away eventually. However, is that truly a sustainable solution to the problem? I believe both parties are engaging in frivolous attempts to solve the issue in order to capture the popular vote during elections and subsequently become the favored party among the Jamaican electorate, rather than truly implementing measures and engaging in sustainable solutions for a problem that has plagued Jamaica for far too long.
The People’s National Party’s Plan (PNP)
Opposition leader Mark Golding has announced that, should his party form the next government after the election cycle beginning September 3, 2025, the People’s National Party (PNP) will provide young persons under the age of 35 with a $500,000 grant towards housing. This initiative, called the “Young Owners Deposit Fund,” is positioned as a major housing solution. However, I believe this plan to be reckless and unsustainable. The so-called “$1 Billion Initiative” is short-sighted and will likely do more harm than good for the housing sector.
The Problem of Inclusivity
The first issue with this initiative is inclusivity. How many people will truly benefit from this proposal? One billion dollars divided by $500,000 equals only 2,000 individuals. That means only 2,000 persons under the age of 35 would receive assistance.
I do not work at STATIN, nor does STATIN currently provide reliable data for 2024–2025, but an educated estimate suggests that there are about one million Jamaicans who would qualify for this grant. Dividing one million by 2,000 gives a negligible 0.002. In other words, this plan would help only 0.002 percent of those eligible. That number is far too meager for such a costly initiative.
Moreover, I have not heard any clear explanation as to which sub-groups within the “young people” category would be prioritized. Shouldn’t data be collected to identify those most in need before such a proposal is implemented? Without such targeting and extensive planning, the initiative lacks fairness and effectiveness.
The opposition leader has not even mentioned a clear age range of individuals who can benefit. From the articles being posted, the only stipulation seems to be persons under 35. Does that mean that everyone currently in Jamaica who is under 35 is eligible for the grant?
Funding Concerns and NHT’s Mandate
The second major issue is funding. How does the PNP plan to source the one billion dollars? Golding has said the fund would be established within the National Housing Trust (NHT). This raises a critical question: is the PNP simply planning to redistribute contributors’ funds taken from their salaries in years past, under the guise of a grant?
If that is not the case, and persons who have not contributed to the NHT through salary deductions can access the grant, wouldn’t that be unfair to those who fall outside of the age stipulation? Essentially, it would mean handing over the contributions of older individuals to persons whom the PNP deems more deserving of a house. Those individuals aged 35 and older would essentially be punished for being born too early and have their contributions taken because of it.
This would also mean that the PNP, the same party who established the NHT in the first place under Michael Manley would be pushing the NHT away from its original mandate, established in 1976, which is to facilitate home ownership by providing financial assistance and low-interest loans to contributors for the purchase, building, and repair of their homes.
Economic Consequences
The third problem lies in the likely economic impact. If thousands of individuals suddenly have the same deposit amount, home prices will inevitably rise due to basic supply and demand principles. Increased demand with a limited supply of housing will drive up prices, effectively nullifying the benefit of the grant. The higher the demand for a good in a free market, the more the cost for said good will increase.
I believe the PNP’s proposal is little more than a smokescreen or a knee-jerk attempt to win votes with a flashy, billion-dollar promise that will have minimal impact on the housing struggles young Jamaicans face. Worse still, it could deepen the crisis by inflating prices and undermining the NHT’s mission.
The Plan of the Jamaica Labour Party (JLP)
At some point in the future, the land available for housing will be exhausted because land is a finite resource. Yet, people will still be without homes because the government remains too focused on quantity rather than addressing the micro factors that perpetuate this so-called “housing crisis” and ensuring sustainability.
On August 24, 2024, the Jamaica Labour Party (JLP), during a mass rally in Sam Sharpe Square and as part of its manifesto, announced its intention to deliver 60,000 housing solutions if it forms the next government. Dr. Andrew Holness did not mention any other strategies to alleviate the housing problem, which leads me to believe that he considers the issue to be solely a shortage of houses. It is not.
Focusing on one solution to such a complex and sensitive problem is precisely the wrong approach. The answer cannot simply be to build more houses indefinitely. That is not sustainable. The real focus should be on understanding why so many people cannot access housing and working to resolve those underlying issues.
While I agree that Jamaica can benefit from additional housing solutions, the approach to addressing the housing crisis cannot be as one-dimensional as the government currently presents it.
My Solution to the Problem
One of the main reasons I do not fully believe in the claim of a housing crisis is the number of empty houses and lots scattered across communities in Jamaica. This is a widespread phenomenon that the government needs to address urgently.
In many cases, these properties are abandoned because their owners migrated or have passed away without making arrangements for their homes or land. As a result, the properties remain unused and deteriorating, which is a significant waste of resources, especially since land is a finite resource.
Under the law of adverse possession, a squatter can take ownership of your land if that individual can prove that they were in possession of your land, without your authorization, for at least 12 years.
I strongly believe that no property in Jamaica should remain abandoned for more than 12 years. After such a period, it is the government that should have the authority to repossess and repurpose these properties. They could then be made available for purchase by individuals seeking housing, particularly young people who struggle to find affordable options.
While this may seem unfair to some, it is necessary for the country to move forward and ensure equity. A useful analogy is the gaming world, especially in online games: if a player is idle for too long and makes no moves, the game automatically removes them to make space for someone active. Similarly, it is unfair for properties to remain idle for decades while so many citizens cannot find a place to live.
I recall a time when I was taking a stroll with a friend, and he pointed out that an entire block we were passing was empty. He lamented how unfair this was, given that young people like us are constantly battling to secure housing. Yet, here were these houses sitting empty, neglected, with no one returning to claim them.
This is why I believe the government must intervene and implement policies to tackle this issue. It is unacceptable for so many abandoned properties to exist while citizens face severe housing challenges.
Therefore, I do not entirely agree with the narrative of a housing crisis as it is commonly portrayed. Yes, there are challenges, but before we declare a crisis and rush to build more houses, we must address existing inefficiencies, such as abandoned properties.
I will acknowledge that a system to track and manage abandoned properties would require significant resources but it could be as simple as starting as a ticket system that residents can send to the National Land Agency to alert them that there is an abandoned residential building in their area.
No Cap on Investment Properties
Another critical issue contributing to housing challenges in Jamaica is the lack of restrictions on foreign ownership of land and investment properties. I strongly believe that individuals who live outside the country and have no ties to Jamaica should not be allowed to purchase unlimited land or housing in the country.
The Jamaican dollar is one of the weakest currencies in the world, and when individuals from countries with stronger currencies are allowed to freely buy property in Jamaica, it creates an unfair advantage. Their superior purchasing power forces locals into an impossible situation where they cannot compete. These individuals will inevitably win in the housing market, and before long, there will be little or nothing left for Jamaicans living in Jamaica.
To be clear, I am not opposed to former residents or Jamaicans living abroad who wish to own a home in their birth country. That is understandable. What I do oppose is allowing individuals who have no ties to Jamaica to purchase any amount of land or housing. This practice will not end well, and in fact, we are already seeing its negative effects.
The prices of houses currently being sold in Jamaica suggest that they are not geared toward locals but toward foreign investors. The average Jamaican simply cannot afford these prices. If locals are priced out, then who is the target audience for these developments? Clearly, it is foreign investors. This trend is slowly but surely selling away the country in the greedy and capitalist pursuit of wealth.
If implementing a cap on the amount of property foreign investors can purchase is not possible because of the very real reality that such a policy could deter foreign direct investment, which is a major source of capital for the economy, then at the very least, the government should impose higher taxation on these investors. This includes significantly increased land taxes and higher insurance costs. Such measures would create some level of deterrence and reduce the competitive disadvantage faced by Jamaican citizens.
Secondly, there is no regulation on the rise of Airbnb properties within residential communities and developments. Allowing individuals to own multiple Airbnb units gives them a more flexible and reliable income stream, which creates unfair competition for those who are simply trying to find a permanent home.
This also poses security risks, particularly in gated communities, where constant short-term rentals can compromise residents’ safety. There must be stricter regulations on this practice. Otherwise, entire new developments will be purchased and converted into Airbnb properties, leaving nothing for people who genuinely want to live in these homes.
Affordable Housing
Another issue perpetuating the housing crisis in Jamaica is the simple fact that homes are not priced within the reach of the average Jamaican buyer. Housing must be made affordable. While this idea may face resistance from developers, investors, and homeowners, I believe that pushing for affordable housing is both necessary and beneficial.
I propose implementing a cap on housing prices through a comprehensive and well-thought-out pricing scale. This scale would categorize homes based on factors such as the number of bedrooms, size, and land space, setting a maximum price for each category. For example, a one-bedroom home should not be sold for more than a specified amount, and the same principle should apply to two-bedroom homes and so on.
This measure is critical because there is a growing trend of individuals selling one-bedroom quad units still in the same condition as when they were originally built by Matalon for outrageously high prices. This practice is driven by the widespread belief that housing value must always appreciate, even when there is no justification for an increase in value.
By introducing price caps and structured pricing categories, the housing market can become fairer and more accessible to the people who need homes most.
References
Golding says NHT depositors under 35 would receive $500k towards house under PNP Gov’t
https://www.jamaicaobserver.com/2025/03/18/budgetdebate2025-golding-says-nht-depositors-35-assisted-500k-towards-house-pnp-govt/Banking on housing
https://jamaica-gleaner.com/article/lead-stories/20250825/banking-housing