RE/MAX head says Jamaica has an affordable housing crisis - Our Today (2024)
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Roger Williams, interim group CEO of Spectrum Group, owner of RE/MAX Elite Realty and RE/MAX Jamaica, says there is a need for more affordable housing solutions for Jamaicans.
Williams, who was speaking at RE/MAX Powerbrokers Coffee Break, a precursor to the upcoming RE/MAX Jamaica Premier Real Estate Conference and Expo on Tuesday (March 19), said while the local real estate sector has seen positive growth, there remains a challenge in ensuring that the housing programmes work for Jamaicans seeking to own real estate.
“All I have said so far are positive developments, so far, that have been helping to drive the sector forward but you would be wrong to think that all is well with the sector. (You may think) All I have to do is just a straight train from here to wealth. Any(thing) I buy or touch, I’m good. That’s not the case and the first challenge that we have to call out, on one hand, the growth of the sector is positive, but the challenge that we have, which is sometimes exacerbated by this growth, is the issue of affordability.
A lot of working Jamaicans really find it hard to find property that they can afford, where they want to live, when they want to buy it and this is something that is not a new challenge, it is something that we have been grappling with for decades,” Spectrum Group CEO said.
He further noted that while there are institutions such as the National Housing Trust (NHT) and banking institutions that offer solutions to bridge the gap, the issue of affordability remains a challenge for working-class Jamaicans.
” There are also reasonable questions about the sustainability of the pace of appreciation of some of the properties we are seeing now. Someone asked me Yesterday, who is buying these properties, we seeing all these developments going around and the truth is our sector is not a monolith. We have luxury segments, we have the Pinnacle Jamaica development as an example and they are quick to point out that it is not all over a $1 million pricing for their units, $400,000 starting and going up. You have luxury and you have luxury. But for most Jamaicans, that is out of their reach and out of their target, frankly, so there is a continued need to ensure that the programmes and facilities that we have in place continue to try to serve and bridge that gap between what people can afford and what their aspirations are,” Williams added.
Spectrum’s CEO says with the recent road infrastructure development in St Thomas, Mandeville and May Pen, making it easier for individuals to commute to and from the corporate area, he is expecting a tempering of real estate prices.
” There is a drove price appreciation, particularly in Kingston and St Andrew, there is a concentration of demand in a relatively small and finite inventory of property. Now an individual can live in Yallahs and work in Kingston because it is much easier to travel to come to Kingston, likewise for May Pen, Mandeville etc., so over time I expect those drivers to help temper that widening or that gap between prices and goals,” Williams explained.
He also highlighted the issue of high maintenance fees in some gated communities following last year’s increase in wages for security personnel.
“A lot of these gated communities, security is the largest part of their maintenance fees, so that is causing investors to recalculate their projections on how their returns are going to work. These are not insurmountable but these are challenges that give us pause,” Williams added.
Roger Williams, interim group CEO of Spectrum Group, owner of RE/MAX Elite Realty and RE/MAX Jamaica, says there is a need for more affordable housing solutions for Jamaicans.
America is facing a housing crisis. The U.S. is short millions of housing units. Half of renters are paying more than a third of their salary in housing costs, and for those looking to buy, scant few homes on the market are affordable for a typical household.
Nationwide shortages of dedicated-affordable and supportive housing. In addition to market-wide housing shortages in certain regions of the United States, the term "housing crisis" has been used to describe persistent shortages of non-commodity and supportive housing provided to vulnerable members of the population.
Various factors can create a housing shortage. The current one is a result of: too few homes being built over decades; high mortgage rates making moving home unaffordable for homeowners; COVID-19 disruptions; and Wall Street investors buying up too many owner-occupied homes for rental.
There are some 2,000 homeless persons living in Jamaica. Individuals who are homeless are not necessarily able to enjoy an adequate standard of living, which includes adequate food, clothing and housing, and to the continuous improvement of living conditions.
For a long-term stay in Jamaica, you'll need a rental or to purchase your own home. A studio or one-bedroom apartment rental will range from US$300 to US$1100 each month.
Experts overwhelmingly say that the housing market isn't going to crash anytime soon. The last housing crash helped cause today's lack of supply, which is what's keeping prices from falling. Mortgage rates, however, are expected to fall this year. This will help make homeownership more affordable.
More homes will be built in 2024, but the inventory shortage will persist. Moody's estimates a total housing deficit as high as 2 million units in the US.
The nature of the housing bubble in both the U.S. and Europe indicates U.S. housing policies were not a primary cause. Deregulation, excess regulation, and failed regulation by the federal government have all been blamed for the late-2000s (decade) subprime mortgage crisis in the United States.
Housing affordability has worsened over the past two decades. Median house prices are now 6 times the median income, up from a range of between 4 and 5 two decades ago. In cities along the coasts, the numbers are higher, exceeding 10 in San Francisco for instance.
Shortages of affordable housing are a long-standing challenge in the United States. High interest rates and low inventory are contributing to this issue, as is the growing number of millennials, who are looking for larger homes to raise families.
In conclusion, the Residential Real Estate market in Jamaica is experiencing growth and development driven by customer preferences for modern and luxurious properties, demand for properties in popular tourist destinations, and the popularity of sustainable and eco-friendly homes.
BUT the Realtors Association of Jamaica is saying now is actually the best time to get a mortgage. You just have to shop around. As Vice President of the RAJ, Gabrielle Grant Gilpin-Hudson explains it, Jamaica is currently in a hybrid real estate climate, meaning it's both a buyers' and a sellers' market.
The living conditions in Jamaica are affordable whether people rent or purchase a home with a one-bedroom rental going for $360 per month and purchasing a home is on average less than $75,000. Most Jamaicans do not spend a lot of utilities because the cost of kitchen appliances on the island is expensive.
Firstly, individuals often encounter financial difficulties during the construction process, leading to projects being put on hold or abandoned altogether. This can result from unexpected expenses, changes in financial circ*mstances, or inadequate budgeting.
Introduction: My name is Tish Haag, I am a excited, delightful, curious, beautiful, agreeable, enchanting, fancy person who loves writing and wants to share my knowledge and understanding with you.
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