Christopher Burgess | Evolution of housing in Jamaica: The 1990s: The most productive decade

The 1990s delivered unmatched housing production of 48,250 units, up from 32,000 in the 1980s, driven by low-income housing. IMF’s Structural Adjustment Programme ushered in trade and exchange rate liberalisation. Jamaica aligned with early-decade fiscal reforms and privatisations, including JPS and Air Jamaica, and this spurred economic growth of two to seven per cent of GDP.

“Jamaica was transformed by wide-ranging structural reforms aimed at increasing the role of market forces ... in the conduct of monetary policy, the focus has been on increasing the reliance on market-oriented instruments” IMF (1995)

National Housing Trust (NHT) expanded its beneficiary reach and stable rates, early in the decade, supported private developers. However, by 1996, rising interest rates and the collapse of unregulated financial schemes, fuelled by unsupervised lending, triggered state intervention through FINSAC. Despite turmoil in the private banking sector, housing delivery by NHT held firm.

The key takeaways: Government-led production is critical during financial crises. When inflation and interest rates are predictable, through monetary supervision, investment in housing becomes scalable.

NHT: THE ROCK IN A FINANCIAL STORM

When the financial crisis hit in the mid-1990s, interest rates spiked to over 40 per cent, and private banks retreated from lending. But NHT proved to be Jamaica’s most dependable financier.

NHT has consistently proved more reliable than private institutions, during times of crisis. Between 1990 and 1999, beneficiary disbursements tripled from J$1.3 to over J$4.0 billion, when private lenders retreated from the market. When interest rates peaked in 1996-1998, private sector housing completions plummeted by 70 per cent. But the NHT maintained its lending support to public housing schemes. By 1998, it held 74 per cent of the mortgage market, highlighting the critical stabilising role of a strong public housing financier.

The macroeconomic stability provided by the NHT during the 1990s underscores why it must be returned to its core mandate. The Trust’s resources should be used to build homes and expand access to affordable financing and not diverted for continued fiscal support or outsourced to commercial banks. When the private sector pulled back, the NHT stood firm. In every financial storm, Jamaica needs this steady public hand to secure shelter, and dignity for its people.

JOINT VENTURES

Government and private developers’ collaboration increased housing production in the 1990s. Nowhere was this clearer than in Greater Portmore (1991 to 1999), where over 10,000 starter homes were built, through a joint venture (JV) model. By 1998, over 14 JVs were fuelling a post-crisis construction boom, yielding nearly 7,000 units by 2000.

Despite rising interest rates and inflation, these partnerships held firm. JV partners stepped in with scale and efficiency. By 1995, private sector completions exceeded the public sector’s, for the first time, accounting for over 5034 units. The sector tripled housing starts and doubled completions. The government was also a project manager on many projects. At one point in time the Ministry of Housing handled over 70 projects. Government must be deeply involved in the process, and not just at ribbon-cuttings.

The formula: public land, government facilitation, and private sector efficiency. The JV model is productive and resilient, and worth replicating.

OPERATION PRIDE AND STARTER LOTS

When housing costs soared in the mid-1990s, Operation PRIDE (1994-2001) stepped in to provide land for the landless. It became a lifeline for over 58,000 homeless families and proved to be more resilient in the financial storm.

PRIDE delivered serviced lots and starter units that families could build on. With mortgages out of reach, PRIDE’s affordability offered a crucial safety net for many. In 1995, 6,300 lots were handed over, including 2,400 in Riverton Meadows.

Though modest, these solutions were better suited than high-priced schemes. When private housing starts collapsed, PRIDE kept building in the 1990s. Affordable housing construction was resilient in a financial crisis.

In a country where over 600,000 people live in informal settlements, PRIDE offered a more resilient path to housing production and generational wealth for the landless.

OAKLANDS: BLUEPRINT FOR YOUNG PROFESSIONALS

Oaklands Apartments off Constant Spring Road, built mid-1990s, showed what was possible when housing met planning. With more than 384 units suitable for young professionals, it was a model of affordability and integrated planning, even in a financial crisis. Close to major transport routes, Oaklands made urban living accessible without the high price tag.

Oaklands reminds us that we can, and must build for artists, teachers, engineers, and entrepreneurs. Without targeted solutions, we risk losing our brightest minds to migration. Jamaica’s cities still hold potential for rejuvenation of repurposed five to 10-acre parcels, for similar developments today.

LESSONS FOR TODAY

The 1990s showed us that housing production, even in an economic crisis, is possible. Despite skyrocketing interest rates, the 1990s delivered more housing solutions than in any other decade, thanks to leadership, public financing, and private innovation. With over 48,000 units delivered, it remains Jamaica’s most productive housing decade. From Greater Portmore’s 10,000 homes to the 30,000 lots handed over by Operation PRIDE, the lessons are clear: if we execute boldly, use land wisely, and finance affordability, we can house the workforce and bring dignity to the landless, even in hard times.

The lessons from this decade are Government-led financing, private sector execution, and programs focused on affordability, and not exclusivity are key. The success of the JV model and PRIDE shows that Jamaica can deliver for the landless, the working class, and young professionals alike. Finally, responsible governance must regulate and supervise market forces to ensure that depositors funds are safe and avoid recent events.

Christopher Burgess, PhD is a registered civil engineer, land developer and the managing director of CEAC Solutions Company Limited. He is currently a Jamaica Institution of Engineers council member. Send feedback to columns@gleanerjm.com