In his ongoing series on the rising cost of living, Cayman Independent’s Jay Ehrhart looks at looks at how housing access, affordability, and government policy are shaping everyday life for Caymanians.
In the wake of the 2025 general election, the newly formed Cayman Islands Government has placed housing affordability at the centre of its cost-of-living strategy.
With rent and home prices rising faster than wages, policy pledges from the governing coalition outline a multi-pronged plan to increase access to housing for Caymanians while addressing the underlying cost of building and maintaining homes.
The National Housing Development Trust (NHDT) has already delivered dozens of affordable homes, most recently applying to build nine additional units in East End under the ongoing East End Gardens project.
Meanwhile, the Sister Islands Affordable Housing Development Corporation (SIAHDC) continues to expand projects such as The Highlands and The Woodlands in Cayman Brac.
But with demand growing and costs surging, policymakers and campaign platforms have acknowledged the need for bolder action.
Policy foundations: The right to safe, affordable housing
The Caymanian Community Party (TCCP), a key member of the coalition, pledged in its manifesto that “every citizen has the right to safe, quality housing, and every Caymanian deserves housing security.”
The party outlined a comprehensive housing agenda that includes:
- Home ownership support
- Reintroduce the Government Guaranteed Home Assisted Mortgage Programme (GGHAM) to help eligible Caymanians access zero-down-payment mortgages.
- Raise the upper price limit for stamp duty waivers to reflect market conditions and help more first-time buyers.
- Accelerate NHDT’s construction rate of energy-efficient homes.
- Reintroduce a lease-to-own programme through NHDT.
- Amend planning laws to allow for:
- Smaller lot sizes in well-designed communities
- Modular and higher-density housing (up to 4–5 stories in appropriate zones)
- Mixed-use developments
- Incentives for eligible contractors building low- and middle-income homes
- Revamp the permanent residency system by removing property ownership as a point-scoring category.
- Amend foreclosure laws for fairness and transparency.
- Restrict property sales of land under CI$200,000 and homes under CI$550,000 to Caymanians only.
- Remove stamp duty on mortgages for first-time Caymanian buyers accessing waivers.
- Explore higher stamp duties for overseas buyers.
- Renters’ Rights and Protections
- Enact legislation to:
- Standardise lease agreements
- Improve rental housing standards
- Allow homeowners to build auxiliary units like studios or in-law suites for added affordability
- Social housing and repairs
- Expand access to transitional housing for Caymanians in crisis
- Maintain a stock of public housing for vulnerable families and seniors
- Partner with families to add auxiliary dwellings to house aging parents
- Fund urgent home repairs for Caymanians in unsafe conditions, especially seniors
Construction costs and tariff reform
While increasing supply is critical, so is making housing more affordable to build. A key factor driving up costs is import duties on construction materials.
Under the Customs Tariff Act (2023 Revision), many items essential to building, including cement, rebar, drywall, and roofing are taxed at 17% to 22% – significantly higher than international norms.
| Construction Material | Estimated Cayman Duty | Global Average | Recommendation |
| Cement | 17% | 0-5% | Lower to 5% or less |
| Rebar/Steel | 17–22% | 0-5% | Lower to 5% |
| Roofing materials | 22% | 5-10% | Lower to 5-10% |
| Electrical/Plumbing items | 22% | 5-10% | Lower to 5-10% |
| Drywall/gypsum board | 17% | ~5% | Lower to 5% |
Reducing these duties would help developers and individual builders save significantly on construction costs – savings that could be passed on to renters and buyers.
Systemic reforms and long-term vision
The new government is also being urged to:
- Introduce tax and duty incentives for developers of affordable units.
- Update zoning and land use regulations to support higher-density, mixed-use development.
- Encourage public-private partnerships that leverage government land or financing with private construction capacity.
TCCP’s broader platform links housing affordability with population planning and environmental sustainability, calling for policies that balance growth with liveability.
A turning point for Cayman housing
While these are manifesto pledges rather than enacted policies, they signal a shift in political will toward addressing one of the island’s most urgent challenges.
Paired with NHDT and SIAHDC’s expanding projects and the potential for construction cost reform, housing affordability could see new momentum.
For now, the effectiveness of this strategy will rest on whether these proposals are translated into legislation – and whether the promised savings and protections reach Caymanians who need them most.
