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Half of Puerto Rico cannot afford to buy a home. Unfortunately this is due to the inaccessibility of acquiring a home in Puerto Rico or in good Spanish, properties and houses ARE EXPENSIVE. The people opt for options such as renting, which, although more expensive in the long run, does not require a down payment that in most cases exceeds $15,000. Having savings in their bank accounts is a luxury that many Puerto Ricans cannot afford. The unfortunate reality of the average Puerto Rican does not allow them to have the financial liquidity to become property owners. What we have just described is the current situation of a typical family that uses a conventional mortgage loan and contributes 20% of the down payment to acquire the property.1 Now let's think about the people who live below the poverty level, which is more than 50% of Puerto Rican families.2 What does the government do for these people?
Let's look at this situation from a statistical point of view. In December 2023, the Affordable Housing Index continued to decline as in previous years. A value of 100% on the Index indicates that the household has sufficient income to qualify for a mortgage loan, based on the current average market price. The figure at the end of 2023 was 58%.3 This means that, if a Puerto Rican family wanted to buy a home as of 2023, they only had 58% of their income to do so. Even with all this, 10,479 homes could be sold in 2023. This is the lowest figure since 2020, when sales were affected by the pandemic. In addition, the average price of new housing rose 19% in 2023,
to a record high of $310,619. New home prices have risen over the past 5 years. Existing home prices rose 2.2% in 2023, to $183,604.
One cannot lose sight of the fact that there is also a shortage of supply of properties. New housing construction in Puerto Rico does not exceed 65 units per month.5 On the other hand, Puerto Rico is expected to receive $89 million in additional grants to promote affordable housing solutions and support communities, according to the U.S. Department of Housing and Urban Development (HUD). This allocation of funds seeks to reinforce the agency's mission to improve access to safe and affordable housing for all Puerto Ricans. Let us hope that these funds are used responsibly to address this real and serious problem we face on our island.
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