Christopher Burgess | Evolution of housing in Jamaica: The 1970s – Building for the nation

Globally, the 1970s were marked by oil price shocks, soaring over 900 per cent, and high inflation. For Jamaica, this led to high material costs and forced IMF borrowing that constrained public spending.

Yet, the 1970s were Jamaica’s second most productive housing decade, delivering over 42,000 units, double the output of the 1960s and 1980s (PIOJ). This was driven by coordinated public efforts, including the newly formed National Housing Trust (NHT).

Major schemes like Ensom City, Mount Salem, Nannyville and Portmore changed urban areas and raised living standards. The 1970s answered slow production and affordability issues of the 1960s with scale, and a focus on low-income earners. Amid economic hardship, housing was a national priority and offered lessons for today.

DOUBLED PRODUCTION

The 1970s saw the rise of government-led affordable housing from the 1960s: ‘The Government of Jamaica is now directly involved in housing, in the planning, development, construction, and marketing of over 75 percent of all housing in Jamaica’ (USAID, 1977)

A network of seven agencies drove government-led production, including the Urban Development Corporation (UDC), Housing Corporation of Jamaica, parish councils, Sugar Industry Housing, Ministry of Housing, Ministry of Local Government, and Ministry of Agriculture. The push delivered over 40,000 homes. Between 1975 and 1979, the government accounted for up to 80 per cent of housing output. For example, in 1978, public agencies delivered 3,400 units, while the private sector produced only 1,300. Today, output has dwindled, with NHT, HAJ, and UDC producing fewer than 1,600 units combined in 2023. But the private sector can produce more, with the right conditions.

Joint venture (JV) arrangements were very productive in the 1970s. Gore Tuca Investment Limited built over 641 homes in Cooreville Gardens. Other JVs delivered Braeton, Passage Fort, and Fairy Hill in Portland. However, this momentum proved fragile as by 1978, private housing output declined due to high interest rates, foreign exchange shortages, and political unrest. Experience highlights the sector’s sensitivity to economic and governance conditions.

The Government must lead the development of affordable homes and provide stable conditions for the private sector to participate, otherwise, they will retreat to middle and high-income housing.

NHT: FROM FORMATION TO IMPACT

The establishment of the NHT in 1976 was a watershed moment. It created a dedicated low-interest rate public financing mechanism, through mandatory payroll deductions. In less than ten years since formation, NHT outpaced private institutions, and by 2023 issued over 228,000 mortgages or about 60 per cent of all mortgages. Its mandate is to ‘add to and improve the housing supply’ and promote ‘greater efficiency in the housing sector.’ Simply put, NHT is supposed to build affordable homes at mass scale.

Within three years of its formation, NHT brought stability to the mortgage sector. In 1978, as private mortgage lending slowed to a crawl, the Trust financed 2,453 housing solutions, dwarfing the 275 financed by private institutions. The fledgling NHT anchored housing production in the financial storm.

But NHT might have lost its mandate. According to the PIOJ, in 1979, 98 per cent of its beneficiaries were minimum wage and low-income earners. But today, a CAPRI study shows, they only receive 33 per cent of the benefits. Safeguarding NHT’s mandate is vital to ensure affordable homeownership for working-class Jamaicans.

SITE AND SERVICES STARTER HOMES

In the 1970s, Jamaica embraced the ‘Site and Services’ approach offering affordable lots, on which families could build starter homes. Backed by the Ministry of Housing, and other agencies over 7,000 units were developed in schemes such as De La Vega City, Catherine Hall, and Bushy Park, empowering working-class Jamaicans.

Operation PRIDE added 30,000 starter homes in the 1990s. Yet, this approach has been sidelined. Catherine Estates, with just 1,600 units, is an exception. Most public housing now targets higher price points beyond workers’ reach, with prices of J$26 to J$35 million. Well beyond what a teacher or firefighter can afford.

A national housing strategy must restore the starter home model, paired with serviced lots, to meet the needs of low-income Jamaicans.

LAND FRAUD AND ‘CLIFTON’

In the 1950s and 60s, many returning residents paid deposits, later to realise that they had no prospect of receiving land and fell victim to real estate ‘conmen.’ Over 60 such offenders were identified, went largely unprosecuted. Mounting complaints led to the 1973 Duffus Commission of Enquiry, which uncovered fraud affecting more than 2,400 individuals. As the scandal unfolded, financers and developers observed deliberations and scaled back production. The result was the creation of the Real Estate Board (REB) in the 1980s, which brought purchaser protection.

The recent Clifton incident at Bernard Lodge reveals that these vulnerabilities persist. Families were displaced from land by the government, they believed they owned after paying J$700,000 per lot. This highlights failures in prosecution and public education around land transactions. Policy must strengthen legal enforcement and expand public awareness.

LESSONS FOR TODAY

The 1970s proved that state-led intervention could transform Jamaica’s housing landscape and double production. The decade saw the formation of the NHT, and the expansion of starter homes. Despite global shocks and domestic unrest, the government and the private sector pushed through, and recovered the production of housing in 1979. Mass affordable housing is possible with political will, coordination, and public financing.

Today, Jamaica faces a deep housing deficit of over 190,000 homes. Yet the formula from the 1970s remains relevant: utilize the NHT and incentivise JVs for low-income earners, and scale-up starter homes. The 1970s proved that with government-leadership, housing can drive national transformation, despite global crisis.

Christopher Burgess, PhD is a registered civil engineer, land developer and the managing director of CEAC Solutions Company Limited. He is currently a Jamaica Institution of Engineers council member. Send feedback to columns@gleanerjm.com