NASSAU, BAHAMAS — The Bahamas’ housing ‘crisis’ is a deeply rooted structural issue that will require coordinated action across government, financial institutions and individuals, according to a senior bank executive who cautioned that any meaningful solution “will not happen overnight.”
Speaking with Eyewitness News, Dwight Burrows, Managing Director at RBC FINCO, said the first step in addressing the crisis is clearly identifying its underlying causes.
“I think the first thing that’s important is to recognise what those challenges are,” Burrows said, explaining that many of the issues are structural in nature.
He referenced an International Monetary Fund (IMF) Selected Issues paper on housing affordability in The Bahamas, published in April 2025, which outlined several key drivers of the current housing challenge.
Among them is population growth, particularly in New Providence, coupled with a sharp decline in housing supply.
“One thing that stood out for me when I was doing my research is the fact that back in 2006, we had more than 1,700 completed homes,” Burrows said. “When we compare that to 2023, just 600. That’s a material difference.”
Affordability, he added, remains a major concern, pointing to the widening gap between housing costs and wage growth.
“What I identified is that the cost of housing between 2010 and 2022 went up by an average of 14 percent,” Burrows said. “Wages in the country only went up by 2 percent. And so, that’s a material issue when you talk about affordability.”
Burrows also highlighted the financial constraints facing many prospective homeowners, noting that mortgage applicants often struggle due to high debt servicing ratios, credit challenges, and limited savings.
“Typically, mortgage applicants have challenges because of a number of factors,” he said. “High debt servicing ratios, maybe because they’re carrying consumer debt from years in the past. Issues with credit profile — maybe they didn’t pay enough attention to making payments on time, and now we have a credit bureau. That’s important.”
However, he stressed that perhaps the most significant barrier is the lack of savings.
“The most important one, is the fact that most people don’t have the savings necessary to come to the table and afford or make the necessary down payment, and the closing costs related to home ownership,” Burrows said.
He argued that financial institutions must play a more proactive role in financial education, particularly earlier in individuals’ working lives.
“We have a primary responsibility to do better at educating the public much earlier in their lifetime,” he said. “We need to move away from a reactionary approach and be proactive in how we get to people and how early we get to them.”
Burrows pointed to young professionals entering the workforce — including university graduates and new recruits to the Royal Bahamas Police Force and Defence Force — as a key opportunity.
“Long before these individuals get their first paycheck, we should be in front of them giving advice around the things that are important to ensure financial stability and build long-term wealth,” he said.
Savings, he emphasized, must be intentional.
“Far too often, individuals have salary deductions for consumer debt commitments, but they don’t have salary deductions for savings,” Burrows said. “That’s a very easy opportunity.”
He also cautioned that saving for a down payment alone is not sufficient.
“That’s just one part of the process,” he said. “You need to save for a down payment, you need to save for closing costs, and when you move into a home, you need furniture, appliances, and other essentials. And after all of that, you should still have a savings buffer, because home ownership comes with ongoing costs.”
Burrows said savings must be treated as a core component of housing policy.
“Savings should be a part of the housing policy conversation,” he said. “Because one without the other means the policy is not complete.”
He stressed that responsibility for solving the housing challenge is shared.
“The responsibility for how we solve this crisis is not on one individual or one entity,” Burrows said. “As consumers, we need to be more intentional, disciplined, and responsible about how we save and the type of debt we avoid. Financial institutions need to educate, advise, and execute responsibly. And public and private sector partners must also make their contribution, usually through policy reform.”
Ultimately, Burrows said long-term collaboration is essential.
“To solve this problem over the long term, we can’t operate in silos,” he said. “All of the key stakeholders need to come together and talk about the approach. It won’t happen overnight. It won’t be solved overnight.”
Housing, he added, is fundamental to the country’s broader economic stability.
“It’s critically important because housing is a part of economic infrastructure,” Burrows said. “It determines where people live, where they work, and in many cases, whether they stay or leave — and that has ripple effects across the economy.”
