WILLEMSTAD – Curaçao residents overwhelmingly believe house prices are rising faster than their household incomes, while there is particularly strong disagreement with the idea that housing on the island is affordable across all income groups.
The findings are contained in a new academic study into housing affordability by Kristelie A. Isenia of the Inter-Continental University of the Caribbean.
The research surveyed 100 people between the ages of 15 and 64 from different parts of Curaçao. Of the respondents, 55 percent were women and 45 percent men. The largest age category was 35 to 44, representing 36 percent of participants.
One of the clearest results emerged when participants were asked about the relationship between their incomes and property prices.
On a five-point scale, the statement “House prices have increased faster than my household income” received an average score of 4.23, indicating a high level of agreement.
By comparison, the statement that household income was sufficient to afford a decent house scored just 3.15.
The affordability findings were even more pronounced.
Asked whether housing in Curaçao is affordable for all income groups, respondents gave the statement an average score of only 1.56 out of five.
At the same time, participants strongly identified several cost factors as affecting affordability. Residential property prices scored 4.07, construction costs 4.05 and the cost of land 4.03.
The findings suggest that Curaçao’s housing problem extends beyond household income alone.
Interestingly, when researchers compared perceptions among different salary groups, they found no statistically significant differences regarding housing affordability.
The study interprets that result as an indication that affordability is increasingly a broader market issue rather than a problem experienced exclusively by one income category. Supply constraints, market dynamics and policy frameworks can affect households throughout the income distribution.
At the same time, there was a statistically significant relationship between salary range and respondents’ actual housing situation.
The largest housing category among those surveyed consisted of homeowners still paying a mortgage, at 37 percent. Homeowners without a mortgage represented 13 percent. The statistical analysis found a significant difference between salary range and housing situation.
The research also examined household size. It found a statistically significant relationship between salary range and the number of dependents. Among respondents earning between XCG 4,501 and XCG 6,000, 48.1 percent had two dependents.
The author concludes that household income remains important but cannot by itself explain Curaçao’s affordability problem.
Foreign demand, limited housing supply, access to credit, land availability, construction costs and government policies interact with household finances to determine whether residents can realistically buy or rent suitable housing.
The study therefore recommends a broader housing strategy rather than relying exclusively on measures aimed at increasing household purchasing power.
Among the recommendations are more affordable housing programs, support for first-time buyers, greater access to financing, measures to lower construction costs, regulation of foreign investment and policies aimed at increasing the residential housing supply.