The Cayman Islands Government has delivered limited value for money from nearly CI$68 million spent on affordable housing over six years, according to a new audit report.
The report, published by the Office of the Auditor General on 25 August and titled ‘The government’s approach to improving access to affordable housing’, covers the period from 2019 to 2024.
It found that rising property prices and rents outpaced income growth, placing homeownership and adequate rental accommodation beyond the reach of many Caymanians.
Using the international benchmark that housing costs should not exceed 30% of gross income, the auditor general calculated that the average Caymanian monthly income of $4,968 in 2023 translated to an affordable housing budget of $1,490.
Against that, average monthly rent stood at $1,945 in 2024, while estimated mortgage repayments on a two-bedroom home priced at $500,000 reached $3,863 a month.
“Affordable housing is a global issue and one of the most pressing challenges facing the Cayman Islands,” said auditor general Patrick Smith in a press release on 31 August.
“Between 2019 and 2024, the population grew by 27%, property prices rose by approximately 57%, and average rents rose by 42%.
“Combined, these factors are putting significant pressure on the availability and affordability of housing for many Caymanians.”
The report found that even government-run schemes designed to assist lower-income residents fell short of affordability thresholds.
The National Housing Development Trust (NHDT)’s Affordable Housing Initiative, which targets applicants earning no more than $4,500 a month, carries total monthly costs of about $2,200 once utilities, insurance and related charges are included, representing 49% of a qualifying single applicant’s income.
“Despite affordable housing being a government priority since at least 2018, limited progress has been made,” Smith said.
“A significant contributor to this limited progress was the absence of a strategy, clear definition of affordable housing, or formal assessment of housing needs.”
The government published its first Public and Affordable Housing Policy in December 2025 and a 10-Year Strategic Plan in April 2026.
The auditor general welcomed those developments but noted that neither document sets out measurable targets against which progress can be assessed.
Between 2019 and 2024, the NHDT completed 36 affordable homes and had 50 more under construction by the end of that period.
The Sister Islands Affordable Housing Development Corporation delivered no homes during the six years reviewed, though construction of four properties began in 2025.
The government also provided $26.5m in stamp duty waivers over the period.
As at February 2026, more than 1,200 people across the islands were on approved waiting lists, with NHDT applicants waiting an average of 3.6 years and one person having waited nearly a decade.
The report also highlighted the absence of oversight in the rental market.
With 52% of households renting by 2024, up from 48% in 2019, the auditor general noted that there are no minimum housing standards, no inspection regime and no substantive tenant protections.
The Landlord and Tenants Act dates to 1998, and a successor law approved by parliament in 2009 has never been brought into force.
The government, in a press release, said it welcomed the report and pointed to ongoing legislative activity.
The Development and Planning (Amendment) Bill, gazetted on 28 August, would give Cabinet authority to amend planning regulations and consider fee waivers.
A separate Residential Tenancies (Amendment) Bill remains open for public consultation until 20 September.
“Housing reform is not achieved through one bill, one policy or one programme,” said planning minister Jay Ebanks.
“It requires the right tools, the right systems and the discipline to deliver in the proper sequence. These amendments are part of that work.
“The Public and Affordable Housing Policy and 10-Year Strategic Plan set the direction. Now we are putting the pieces in place to support responsible delivery.”
Eric Bush, chief officer at the Ministry of Planning, Lands, Agriculture, Housing and Infrastructure, added: “Government has a significant responsibility in addressing Cayman’s housing needs, and we cannot achieve the scale of change required through government action alone.
“The private sector has an equally important role to play, particularly in increasing housing supply and expanding opportunities for Caymanians to own or rent homes they can afford.”
