The Price of Land for Housing in Trinidad: The Role of Regulatory Constraints and Implications for Affordability

Abstract

Institutional and regulatory environments have a profound impact on land markets and prices. This paper argues that affordability of land and housing ownership in less developed countries is largely affected by cumbersome land transfer processes and an uncertain building permit approval process. It examines the impact of these constraints on land markets and affordability in Trinidad. By using Dowall's land market assessment methodology, the paper examines land price changes and land conversion patterns in the East-West Corridor region of Trinidad between 1989 and 1993. While prices of fully registered and serviced land have remained stable during this period (unlike many cases of 'skyrocketing' land prices reported in the literature), an examination of institutional and regulatory constraints suggests that land prices are likely to increase in the future when demand conditions become more favourable. These constraints have certainly played a significant role in the expansion of unauthorised housing settlements as documented by household survey results.