Minister of Housing and Urban Renewal Keith Bell said yesterday that while the results of a housing census indicated a large number of abandoned buildings, it does not accurately reflect the housing crisis Bahamians are facing.
“Despite the increase in dwellings, Bahamians continue to face crowding and rising rents,” said Bell in the House of Assembly.
“If there were truly an excess of homes, rents and property prices would be falling; instead, prices continue to rise.”
He cited an International Monetary Fund (IMF) paper on housing affordability in The Bahamas, which found that between 2012 and 2022, property prices and rents rose by 14 percent, while average salaries increased by two percent.
“The cost of housing, therefore, grew seven times faster than wages. That is the definition of a housing affordability crisis.”
The 2022 census recorded 144,198 dwellings in The Bahamas, of which 25,060 were vacant.
Bell said there has been discourse, with some suggesting the number of vacant dwellings indicates there is no housing shortage.
He said this is inaccurate.
“What it does not say, Madam Speaker, is that there are 25,000 homes simply available for Bahamians to move into,” Bell said.
“Anyone who makes such a claim either has not read the report, Madam Speaker, or has willfully misunderstood its contents.”
Bell said the report lays out the complex reasons for the vacancies and the need for further study.
“A dwelling recorded as vacant simply means that no one lives there on the day of census; it does not mean that the home was available or affordable,” he said.
Bell added, “What may be considered habitable for statistical purposes is not necessarily what the average Bahamian family would regard as livable.
“A structure may meet the census definition of a dwelling, yet still lack electricity, running water, plumbing or proper sanitation. Many of these dwellings are in need of repair or are used only seasonally. Others are short-term rental properties or are owned by non-residents.”
Bell said data from the Bahamas National Statistics Institute (BNSI) showed that more than 9,000 of the vacant dwellings were listed for rent, 900 were listed for sale, 2,000 were short-term rentals, more than 3,000 were seasonal homes, over 2,000 were secondary residences and over 7,000 were derelict or unclassified.
“It is, therefore, clear that very few of these dwellings are available to meet the housing needs of Bahamian families,” he said.
Bell said the issue has been brewing over decades, and noted that in recent years it has been exacerbated.
“Between 2010 and 2022, the national population grew by approximately 14 percent, while the number of occupied dwellings grew by about 16 percent,” he said.
“On the surface, this appears balanced, but the reality is … a significant share of new dwellings are now investment properties, second homes or short-term rentals that do not accommodate Bahamian households.”
Bell also lamented that some commercial banks have become more reluctant to lend to Bahamians seeking to build or purchase homes.
“Many of the same institutions, Madam Speaker, that claim the market is oversupplied, continue to hold repossessed or distressed properties for years, refusing to sell them at market value because doing so would require them to recognize losses,” he said.
“These homes remain locked up, idle and unproductive, contributing nothing to the economy or to national housing supply.”
Bell said it is a problem the Davis administration is “addressing head-on”.
“This government is determined to solve our housing challenges through Bahamian innovation and participation,” he said.
“We are building partnerships that bring together public resources, private investment and community expertise to deliver sustainable results.”