In a bold policy shift aimed at directly addressing Jamaica’s housing affordability crisis, Prime Minister Andrew Holness has announced a ceiling on the National Housing Trust’s (NHT) housing development costs. Going forward, the NHT has been instructed to build only homes that fall within a $14-million price range.
The new mandate, revealed during the Prime Minister’s presentation in the 2025/26 Budget Debate, is a direct move to align housing supply with the purchasing power of average contributors. Holness was clear: the NHT will no longer pursue high-end developments that exceed the affordability bracket of its core base.
“The real crisis is in affordable housing,” Holness stated, noting that rising loan limits have inadvertently driven up market prices. “Every time we raise the loan cap, prices jump. So now, we’re capping construction costs to ensure that contributors benefit, not developers.”
This change comes amid lingering criticism over past NHT projects like Ruthven Towers in New Kingston, where unit prices soared to as high as $37.7 million, sparking nationwide backlash. Holness defended those developments as necessary to ensure a socio-economic mix in urban centers, but said the focus must now shift to low- and middle-income earners.
Aggressive Measures to Ease Housing Access
The government is not stopping at cost control. A suite of new benefits will roll out effective July 1, 2025, designed to widen access to homeownership and reduce financial barriers for contributors:
- Loan Limits Increased: Individual borrowers can now access up to $9 million, up from $7.5 million. For co-applicants, the cap moves to $17 million for two people and $23 million for three.
- Targeted Lending for Affordable Homes: A contributor buying a unit priced at or below $14 million will now be eligible for a loan of up to $12 million, based on affordability checks.
- Construction Support: The loan ceiling for contributors building their own homes rises to $11 million. Co-applicants can access up to $23 million for joint construction projects.
- Refund Flexibility for Private Sector Workers: Private sector mortgagors—previously excluded—will now be able to access their NHT contribution refunds while still repaying a mortgage, similar to public sector workers.
- Reduced Wait for Home Improvement Loans: Contributors can now access home improvement financing after seven years of contribution instead of ten, with the loan cap increased to $5 million.
Lowering the Entry Barrier for Low-Income Earners
In a move likely to benefit thousands of lower-income contributors, Holness announced key changes to reduce upfront costs:
- Deposit Reduction: For contributors earning under $30,000 per week, the required deposit on homes priced at or below $14 million will be slashed from five per cent to two per cent.
- Service Charges Cut:
- Contributors earning $30,000 or less weekly will no longer pay any service charge.
- Those earning between $30,000 and $42,000 weekly will see their charge drop from five per cent to two per cent.
- Contributors above the $42,000 threshold will continue to pay five per cent.
- Expanded Grant Eligibility: The NHT’s $3.5-million home grant will now be open to contributors earning up to $30,000 weekly, up from the current minimum wage benchmark. The grant remains available to those with at least seven years of contributions.
A Shift in Strategy, A Nod to Reality
The prime minister emphasized that this new directive is about prioritizing where the greatest need lies—ensuring housing access for the country’s most vulnerable and modest earners. While the high-rise, high-cost projects of the past may have served a purpose, the current economic climate demands a reorientation of national priorities.
“Affordable housing is where the real battle is,” Holness said. “And that’s where we are focusing every tool, every dollar, and every policy of the NHT.”
With these sweeping reforms, the government is making a calculated bet: that by tightening its focus on affordability, it can rebalance the market and provide hope for thousands of Jamaicans still dreaming of owning a home.
