Housing Affordability in The Bahamas: Bahamas

Selected Issues Papers, April 11, 2025

Source details

Authors: Maria Alexandra Castellanos, Beatriz Garcia-Nunes, Shane R Lowe, Vu Chau
Published: April 11, 2025
Series: Selected Issues Papers
DOI: https://doi.org/10.5089/9798229008563.018

Authors: Maria Alexandra Castellanos, Beatriz Garcia-Nunes, Shane R Lowe, Vu Chau
Publication date: April 11, 2025
Core finding: Though the population in The Bahamas has expanded swiftly since 2010, the stock and affordability of new housing has not kept pace due to limited wage growth and financing constraints.
Chapter scope: Takes stock of recent trends in the residential housing market in The Bahamas and discusses potential drivers of reduced housing affordability.

Housing supply and affordability:
- The stock and affordability of new housing has not kept pace with population expansion since 2010.
Primary drivers identified:
- Limited wage growth.
- Financing constraints limiting access to credit for residents.
Government action to date:
- Guaranteed loan programs.
- Construction of public rental units.
Assessment of current policy stance:
- Authorities have taken various initiatives to alleviate housing shortages, but there is room for additional public spending in housing.
- Easing access to credit for residents would support increased homeownership.

Increase public spending in housing to address shortages and improve affordability.
Ease access to credit for residents to support higher rates of homeownership.
Continue or expand guaranteed loan programs and public rental construction as part of a broader housing strategy.