Bermuda needs to build approximately 2,500 additional housing units to support its target population of 70,000 people, according to data presented by Marico Thomas, the president of the Chamber of Commerce, at the group’s annual meeting today.

“Using estimates for a utopia population of 70,000 people, we would need about 33,654 households based on estimates of housing, but we would need to build about 2,500 additional households based on a household size of 2.8 people per household, with everybody living in a white box, right? That’s the key piece,” Mr Thomas told attendees at the meeting, held at the Hamilton Princess & Beach Club.

The housing shortage, he said, represents a critical challenge to Bermuda's economic development goals despite the island experiencing population decline in recent years.

The population stands at approximately 64,500 people, significantly below the target of 70,000 that Mr Thomas suggested would better support healthcare and pension systems.

The population shortfall comes at a time when international business growth has added more than 1,000 jobs to the economy, he said, creating additional housing pressure.

But if the population is decreasing, he asked, why is housing less available?

The demographic shift towards single-occupancy households is creating unexpected pressure on the market despite the overall population decline.

He said as household size has fallen, single people are taking up housing units designed for multiple people.

“Consider, if three people, right now staying in a three-bedroom house, and all three move out, are they going to be replaced with three? How often is it that they might be replaced with a single person in that same space?” Mr Thomas explained. “It changes the dynamics.”

Mr Thomas also pointed to a shift in housing support for workers within the international business sector, which has implications for local housing markets.

“Housing support within international business has increased by 30 per cent,” he explained, while pointing out that local businesses typically do not offer housing allowances, creating disparities in the market.

Mr Thomas pointed to what he called the “white box” of optimal housing efficiency, noting that those with housing allowances often choose larger spaces than they need, which further strains the already limited inventory.

As Bermuda aims to be a hub for international business, particularly in reinsurance and emerging digital finance sectors, Mr Thomas said, the housing shortage is a potential bottleneck for economic growth and population expansion.

But housing, he emphasised, connects many different economic concerns facing the island.

“Housing is the centre of international business, immigration, education, healthcare, financing, cost of living and labour,” he said.