Access to affordable homeownership in Aruba is becoming an increasingly structural and difficult challenge to overcome, especially for locals searching for their first home. What used to be an achievable goal has now turned into a hurdle of inflated construction costs, land scarcity, and a lack of better financial literacy. According to Alex Cybul, a property owner in the vacation rental sector, the solution does not lie in copying foreign models, but rather in understanding the island’s unique reality and listening to local experts.
In a deep analysis of the current housing situation, Cybul highlighted key points defining the local market while debunking some structural myths.
Two Decades Without Major Social Housing Projects
One of the pillars of the problem is the lack of new social housing. Aruba is suffering from aging infrastructure and stagnation in this area. The last large-scale projects built on the island, such as the Bushiri neighborhoods, are nearly 20 years old.
To relieve this pressure, land is required. However, geographical and administrative realities are beginning to impose limits: there is simply not enough land available to cover the needs of a population that continues to grow year after year.
Material and Labor Costs Have Tripled
For those who do have a piece of land or are trying to build on their own, the construction market has dealt a heavy blow to their wallets. According to Cybul, the cost of basic materials has risen drastically in a very short time, directly impacting final budgets.
“A bathroom vanity that used to cost 350 Florins now can’t be found for less than 1,200 Florins. The price of a toilet has also doubled or tripled, jumping from an average of 150 to 200 Florins to more than 600 to 700 Florins,” Cybul illustrated.
Additionally, labor costs in the construction sector have seen a considerable increase, making the cost per square meter of construction untouchable for a standard salary.
The Myth of ‘Vacation Rentals’ vs. Local Housing
The so-called vacation rentals or large condominiums (such as Azure, Oceania, among others) are often blamed as the main culprits behind the local housing shortage. However, Cybul explains that this is a market misconception.
These projects operate in a much higher price bracket, frequently exceeding 1 million Florins, featuring luxury levels tailored to an international market. This is completely far off from the segment of a local looking for their first home, who structurally has a budget between 250,000 and 350,000 Florins.
The real danger, and where the regulatory focus should actually be, according to the expert, is preventing investors from entering normal residential zones to buy up homes that are supposed to be designated for locals to live in.
Financial Literacy: The First Step to Requesting a Loan
A lack of financial literacy remains one of the biggest obstacles before a person even knocks on a bank’s door. Often, clients prioritize other types of expenses over their housing—a habit that limits their borrowing capacity when the bank evaluates their credit profile.
There is a need to structure guidance for local buyers, teaching them the ideal steps to manage their finances and how to prepare legally and financially before applying for a mortgage.
Finally, Cybul makes a call to action regarding regulatory decision-making. He pointed out that when designing policies or laws for this industry, decision-makers must sit down and listen to the local experts who work in Aruba’s sector every day.
Aruba has its own micro-economy and its own structural reality. Consequently, formulas or decisions designed for cities like Amsterdam or New York cannot be applied verbatim to the island. Effective solutions must come from local experience.
Housing Challenges and Reality in Aruba: High Costs, Land Scarcity, and the Role of Vacation Rentals
