By Fay Simmons

Tribune Business Reporter

jsimmons@tribunemedia.net

A Cabinet minister yesterday argued that 95 percent of the 25,00-plus vacant dwellings identified in a recent national housing survey are unfit “to meet the housing needs of Bahamian families”.

Keith Bell, minister of housing and urban renewal, yesterday pushed back at assertions by Gowon Bowe, Fidelity Bank (Bahamas) chief executive, that such an inventory of available residential dwellings means this nation “doesn’t have a housing shortage” if these properties are repurposed and made fit for occupation.

He argued instead that the findings by the Bahamas National Statistical Institute (BNSI) have been misinterpreted by those suggesting there are tens of thousands of vacant homes available for Bahamians, stressing that the data paints a far more complex picture of the national housing landscape.

Mr Bell said the report recorded a total of 144,198 dwellings across The Bahamas. Of these, 25,060 were vacant, meaning approximately 17 percent of all dwellings were not occupied on census day. 

However, he added that detailed data revealed at least 23,900 of the 25,060 vacant dwellings - roughly 95 percent of all residential properties identified in the census - are not realistically available to ordinary Bahamian families.

“The detailed data published by the Institute revealed that more than 9,000 of these vacant dwellings were listed for rent, about 900 were listed for sale, more than 2,000 were short-term Airbnb rentals, more than 3,000 were seasonal or winter homes, more than 2,000 were secondary residences, and more than 7,000 were derelict or unclassified,” said Mr Bell.

“It is therefore clear that very few of these dwellings are available to meet the housing needs of Bahamian families.” Mr Bowe had told Tribune Business that returning these 25,000 properties to “productive” use and occupation will deliver far greater benefits for the Bahamian economy and society as opposed to the Government persisting with the construction of more affordable homes.

Suggesting that successive administrations have wanted “to be seen giving keys to persons” for newly-constructed homes for political reasons, the Fidelity chief again reiterated his proposal for the Government to instead work with the banks and other commercial lenders to cure the “overhang” of distressed properties that has endured since the 2008-2009 recession.

He added that this has tied-up assets, clogged balance sheets, and dampened the willingness of lenders to extend mortgages even to home buyers who seem qualified. This is likely one factor behind the 4,000-plus drop in the number of residential dwellings owned via a mortgage in 2022, some 19,299, compared to the 23,434 recorded when the last Housing Census was taken in 2010.

Mr Bell, though, yesterday told the House of Assembly that the census data and financial trends revealed The Bahamas is facing a deepening housing affordability crisis with rental rates and home prices increasing at a rate that is outpacing wages. This has left many Bahamians struggling to secure affordable homes.

The minister said that while data in the Bahamas National Statistical Institute (BNSI) 2022 census of population and housing indicated the number of occupied homes has grown slightly faster than the population - 16 percent versus 14 percent - this apparent balance was misleading.

He explained that while it might seem housing supply is keeping pace with demand, a large portion of the new dwellings built since 2010 are not serving Bahamian families. Instead, many are being used as investment properties, vacation or second homes, and short-term Airbnb-type rentals.

This means that while the housing stock has technically grown, the number of properties actually available and affordable for Bahamian residents has not , leaving locals facing rising rents and limited housing options despite what the statistics might suggest.

“Between 2010 and 2022, the national population grew by approximately 14 percent while the number of occupied dwellings grew by about 16 percent. On the surface, this appears balanced, but the reality is more nuanced. A significant share of new dwellings are now investment properties, second homes or short-term rentals that do not accommodate Bahamian households,” said Mr Bell.

He added that a second home occupied by a non-resident at the time the census is conducted is classified as “occupied”, even though that individual is not included in the national population figures, leading to an imbalance between population and occupancy numbers. 

“This statistical distinction creates a gap between the apparent stock of dwellings and the functional supply of housing for Bahamian residents. It explains why, despite the increase in dwellings, Bahamians continue to face crowding and rising rents. If there were truly an excess of homes, rents and property prices would be falling. Instead, prices continue to rise,” said Mr Bell.

Citing International Monetary Fund (IMF) data, he added that - between 2012 and 2022 - property prices and rents rose by 14 percent while average wages only increased by 2 percent. This meant the cost of housing grew seven times faster than wages. “That is the definition of a housing affordability crisis,” he added. 

Mr Bell also criticised banks and financial institutions for their role in the housing supply challenges facing Bahamians. He said many have become increasingly reluctant to lend for home purchases, even to qualified Bahamians, restricting access to the home ownership market for residents.

“Some have argued that there is no housing shortage because banks hold distressed or vacant assets, yet many of these same institutions have become increasingly reluctant to lend for homes - even to qualified Bahamians,” said Mr Bell.

He said the decline in owner-occupied homes covered by a mortgage is not merely due to homeowners paying off their mortgages, but reflects a broader contraction in lending practices. Mr Bell criticised banks for holding repossessed or distressed properties off the market for years, refusing to sell them at market value to avoid recognising losses.

“The report indicates that the share of owner-occupied homes under mortgage has fallen from 22.8 percent in 2010 to just 16.2 percent in 2022. This is not merely a result of repayment; it reflects a contraction in lending. Many of the same institutions that claim the market is over-supplied continue to hold repossessed or distressed properties for years, refusing to sell them at market value because doing so would require them to recognise losses,” said Mr Bell

“These homes remain locked up, idle and unproductive, contributing nothing to the economy or to national housing supply. By contrast, this government is determined to solve our housing challenges through Bahamian innovation and participation. We are building partnerships that bring together public resources, private investment and community expertise to deliver sustainable results.”