Anyone looking for an affordable home to rent in Bermuda will be acutely aware that we are in a housing crisis. Those at the lower end of the economic scale are feeling the effects most.

A glance at the Property Skipper website one day last week revealed only 57 properties available for rent. As recently as 2018, one could expect to find more than 600, Adam Birch, rental representative at Coldwell Banker Bermuda Realty, recently told The Royal Gazette.

Of the 57 available, only four were being offered for less than $3,500 per month. While this may be an unscientific snapshot of the private rental market inventory, the lack of realistic options for struggling families and individuals is starkly evident.

Other indicators point to unmet demand for affordable housing. The number of people on the Bermuda Housing Corporation’s waiting list has risen sharply over the past year to 187 as of April, according to a government statement at the time. Another barometer of need is the 811 people identified by Home as experiencing homelessness in Bermuda at the end of 2023.

An inadequate supply of truly affordable housing inescapably drives homelessness. It follows that available, affordable or social housing is an essential element of any plan to end homelessness.

Bermuda lacks detailed data on housing supply, usage and demand, data that would be crucial for crafting effective solutions. A standard data set, with clear definitions captured on a timely basis, is critical to understand the true nature and scope of the challenge. A clear and complete picture of the issue is a prerequisite to effective policymaking on housing.

New housing supply is failing to keep pace with rising demand. Research published by the Bermuda Chamber of Commerce this year shows the slowing rate of new dwelling units being brought online. Between 2002 and 2009, Bermuda was adding an average of 289 units per year; since 2015, the rate has fallen to 75 new units annually.

To increase Bermuda’s affordable and social housing stock will require bold policies and actions, not to mention considerable investment. So, why should we do it?

Stronger community

Unsustainably high housing costs financially suffocate some households, straining budgets to the point where there is not enough left to cover other essentials, such as food, utilities, healthcare and education. Surging inflation has exacerbated these stresses.

Sufficient affordable housing would be life-changing for households in this situation. Spending a smaller proportion of their income on housing would relieve food security concerns and better enable families and individuals to focus on their education, work and family life. Less financial and emotional stress at home also creates a more stable environment for children to learn and thrive.

Action taken to provide the social and affordable housing our community needs could revitalise neighbourhoods, and turn disused and abandoned buildings into homes.

Economic benefits

Affordable housing alleviates the financial burden on working people. Businesses benefit because employees who are less worried about their ability to pay bills are better able to commit to their organisation and work. In effect, they become more productive members of society, to the benefit of Bermuda as a whole.

Meeting the need for housing would also relieve the stress and disruption caused to households hosting sofa-surfers, relatives or friends unable to find affordable accommodation.

In addition, it would help to stem the flow of Bermudians leaving the island because they can no longer afford to live here. Emigration is a damaging trend, given our demographics and the Government’s efforts to increase the working population to support the viability of our economy, and the funding of our public services.

Construction work on the necessary new affordable housing stock, whether through renovation, change of use or new builds, would itself boost the economy, creating jobs and work for contractors.

Government finances

The public purse benefits from an adequate supply of affordable and social housing, both on the expenditure and revenue sides.

Having a sustainable place to live provides the bedrock of stability everyone needs to be productive. Living in a secure home that does not break the budget provides the foundation on which to gain and sustain employment, and to be a net contributor to the system.

The newly elected government in Britain has decided to address its own housing and homelessness issues by investing in the construction of new homes — targeting 300,000 new builds per year, including a substantial proportion of social and affordable housing. In Britain, rents for social housing are calculated according to a formula tied to local incomes and have been historically about 50 per cent of market rates.

Research by the Centre for Economics and Business Research in Britain found that newly built social housing would pay for itself within 11 years, thanks to taxation income arising from the construction work, and reduced government spending on financial support and the consequences of homelessness.

While Britain’s economy and social welfare system are very different from Bermuda’s, similar benefits could result here. For example, imagine the reduced burden on the Department of Financial Assistance if strained households were spending 25 per cent of their income on housing instead of 50-plus per cent. Or the potential savings for a criminal justice system stretched by the consequences of homelessness, when the cost of incarcerating one person for a year exceeds $100,000.

The affordable housing crisis is one of our most urgent social challenges and will require a clear plan, and co-ordination between public and private sectors with the support of planners, and legislative changes to increase the confidence of landlords and renters alike and support sustainable tenancies.

Recommendations laid out in the Plan to End Homelessness include:

• Create a definition of affordable housing that relates housing costs to households’ ability to pay

• Capture data on supply, demand, affordability and accessibility of housing, and the support needed to assist people with maintaining their tenancy

• Conduct strategic housing market assessments to evaluate present and future housing needs, including requirements for housing that is affordable and accessible for people experiencing homelessness

• Set a target for delivering a fixed number of affordable homes each year, and over the long term to ensure supply addresses demand — report on progress publicly

• Establish a rent-setting framework to ensure social housing delivers rents affordable to those on low incomes

• Introduce a property portal that captures all social, affordable or rental accommodation in both the social and private sectors — use this system to match people with homes and identify supply gaps

• Create a regulatory requirement for social landlords to allocate a minimum proportion of lettings to homeless nominees

• Require all private landlords and letting agencies to join a national register of landlords and to submit annual data on rents and size of properties

Tackling our affordable housing crisis will not be easy, but it would help Bermuda to become a healthier, more prosperous and sustainable community — and it is the right thing to do.

• Denise Carey is the chief executive and executive director of Home, a charity with the purpose of ensuring everyone in Bermuda has a safe, stable and sustainable place to live, and that new cases of homelessness are prevented. Contact her at denise@home.bm. To view Home’s 2023 annual report, or to donate, visit the Home website at www.home.bm