Expert Says Affordable Condos Could Help Ease Growing Housing Crisis

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NASSAU, BAHAMAS – For many young Bahamians, the dream of homeownership continues to feel out of reach. However the Speech from the Throne highlighted that the re-elected government plans to combat this issue with continued efforts into their rent to own and affordable housing initiatives.

Real estate agent Aaron Davis says high living costs, tough banking requirements and a rapidly inflating housing market are creating major obstacles for first-time buyers.

Aaron Davis – Real Estate Agent, H.G. Christie Ltd.

“Because cost of living is so high, saving up for a deposit or necessarily being able to afford a home or even the down payment, and closing cost isn’t really in the realm for Bahamians.”

Davis says many young people still face the same hurdles when trying to secure financing.

Aaron Davis – Real Estate Agent, H.G. Christie Ltd.

“So I just did a market report, and the average sale price in Nassau actually is around $400,000. To afford somewhere around $400,000, you have to be paying comfortably between, I’d say $1500 and $1700 [a month]. Don’t quote me on that.”

“So if you look at average salaries, the average person, especially along with regular everyday expenses, can’t afford that.”

However, Davis believes the government’s affordable housing initiatives could help create an entry point for young Bahamians.

Aaron Davis – Real Estate Agent, H.G. Christie Ltd.

“So if you’re pushing homes that are either at cost or, you know, essentially just enough to cover the whatever basis, [is] somewhere around $200,000 to $250,000. This gives young people a step back into the market to actually own something, you know, a piece of the market.”

The Speech from the Throne also promised a national rental property registration system, enforceable living standards, and a Residential Tenancy Authority to inspect and regulate rental properties across the country.

As a landlord himself, Davis says that move is long overdue, pointing to soaring rental costs and poor living conditions in many units across Nassau.

Aaron Davis – Real Estate Agent, H.G. Christie Ltd.

“You know, prices are ridiculous, right? So, you know, the average two bedroom right now is probably around, or somewhere around $2,500, right? And the average Bahamian necessarily can’t afford that.”

“And even when you’re looking at some of these rentals around $2,500 or even 1,800, where you find some one bedrooms, these aren’t you know…the quality of them are very poor, right?”

The real estate agent adds that government should consider affordable condo developments and higher density housing projects to address the country’s growing housing crisis.

Aaron Davis – Real Estate Agent, H.G. Christie Ltd.

“But imagine if now, you’re able to afford somewhere between $125,000 to 180,000, and you can actually move in. It’s nice, you want to live there, you can, you can 100% afford it. That’s something that, you know, you would be able to look forward to. And I think a lot of people need it, especially young people, young bachelors, people that are just coming up.”