Non-market housing the solution to current crisis

THE EDITOR, Sir:

A critical issue facing many young Jamaicans is the cost of housing locally. Whether that is buying or renting, the cost far surpasses the reach of many Jamaicans. One possible solution to this developing problem is non-market housing.

Non-market housing means rental or for-sale housing provided for low- and moderate-income groups not traditionally served by the private market. It is typically made affordable through public and/or nonprofit ownership of housing units, or through rent supplements that allow low-income households to access housing in the private market. Essentially, this may be achieved through renting or selling housing units at the cost it takes to build them (breakeven cost).

Whereas on the private market developers often aim to make a profit for the housing solution, in non-market housing the aim is only to recoup the cost spent on the development. This keeps prices low as often the excessive prices come from developer aiming to make a profit on their housing solutions. Having this kind housing solution will provide Jamaicans with an affordable choice in the short term.

In the long term, this may make major shifts in the housing market. This assumes that more non-market housing solutions are built. Over time, the more that are built, the more choices consumers will have in selecting a solution. Market dynamics dictates that more consumer choices translate to (increased) pressure on the private-market housing solution (providers) to push down prices, to complete with the non-market solutions to attract consumers.

JAVON MOATT

PRESIDENT, G2K PORTMORE