Minister Gumbs updates on housing policy goals

GREAT BAY--Minister of Public Housing, Spatial Planning, Environment and Infrastructure (VROMI) Patrice Gumbs on Wednesday provided an update on the comprehensive housing policy aimed at addressing affordability challenges, speculative real estate pressures, and the impact of unregulated short-term rentals such as Airbnb on St. Maarten’s housing market.

As he has on previous occasions, Minister Gumbs noted that many cities around the world have seen unregulated short-term rental markets reduce the availability of long-term housing, driving up rental and purchase prices. “If we don’t look at development sustainably, we risk disenfranchising the very people who live here,” he said. “For every new development of a condo or luxury villa, the average price of a home and land in St. Maarten goes up. What’s not going up is the average salary.”

The drafted a housing policy, available in its preliminary form for the past month, will define the cost benchmarks for both social housing and affordable housing. “The numbers are very interesting, and we will share them soon,” Gumbs said. “However, the baseline used in the study was not tailored to St. Maarten’s unique land values, and we have more work to do to close the gap between theoretical affordability and real market conditions.”

Once finalized, the policy could be brought to Parliament. It will form the basis for tangible housing development targets and guide both public and private investment.

additionally, Minister Gumbs has been in discussions with developers about integrating social contributions into new projects. While not currently mandated by law, several developers have expressed willingness to give back to the community through education, infrastructure, or social projects unrelated to their own developments.

“If you’re privileged to be here and develop here, you should give back,” Gumbs said. “If your footprint on the island raises the cost of living, you need to invest in solutions that help those who can’t afford your units.”

The Minister also intends to review the building permit process, including the current flat processing fee of NAf. 200 for both small homes and large developments, to ensure a more balanced approach.

On the topic of regulating Airbnb and similar platforms, Gumbs acknowledged that this will require cooperation between the Ministries of VROMI, Finance, and Tourism, Economic Affairs, Transport and Telecommunication (TEATT). “We have collected district-level housing cost and salary data from TEATT’s Statistics Department, giving us a clear picture of community needs,” he explained.

Beyond long-term policy, the Minister emphasized the need to address immediate challenges faced by residents. “We are reviewing the subsidies currently available for social and affordable housing. It is well known that the amount is too low, and we are looking at ways to make this more tangible and impactful for the average person,” he said.

He said that the Ministry’s housing strategy will balance sustainable development, fair regulation, and social responsibility. “It’s about ensuring that everyone in this country can find a place to live, while managing growth in a way that benefits the whole community,” he said.

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