Economist Criticizes Cuba's Housing Law for Overlooking Banks

Economist Elías Amor has expressed concern that Cuba's new Housing Law 187, published this Wednesday in the Official Gazette and set to take effect on October 21, is a missed opportunity to truly transform the island's real estate sector.

In an interview with Tania Costa, Amor doesn't mince words in his assessment: "Investing in housing in Cuba right now isn't the best move because I genuinely believe the State squandered a chance to create a fundamentally different law."

Amor argues that what Cuba really needs is legislation ensuring that "construction becomes an inherently private activity, with the State stepping back from excessive control and an absurdly intrusive regulation, allowing the private sector, supply, and market forces to drive the development of all types of properties."

Parallels with Agriculture

To underscore the core issue, Amor draws a parallel with Cuba's agricultural sector. "In agriculture, the guajiro will never own the land he's toiling over. Since he will never own it, his incentives to enhance productivity and achieve abundant harvests are limited," he explains.

He continues: "The same applies to construction. If a market doesn't exist and the Communist Party and its municipal bodies are the ones deciding who has the right to housing, how many homes can be owned, and where they should be located, whether at the beach or in the countryside?"

Shortcomings of the New Legislation

The Law 187 replaces the 1988 regulation and introduces specific advancements: it permits Cuban residents abroad and foreigners to own up to two properties, abolishes the automatic confiscation of properties upon emigration, acknowledges inheritance rights, and allows for housing cooperatives.

However, the law does not authorize private banking nor does it ensure access to mortgage credit for individual buyers, nor does it amend the 2019 Constitution, which critics argue hinders the full operation of a real mortgage market.

This gap is precisely what Amor identifies as the Achilles' heel of the entire legal framework.

Economic Context and Challenges

The economist also highlights a paradox that starkly illustrates the sector's condition: construction is the highest-paying occupation in Cuba, with an average monthly salary of nearly 14,500 pesos, according to the National Office of Statistics and Information, yet it struggles to attract workers.

The macroeconomic context exacerbates the situation. Cuba's annual inflation rate reached 28.44% in September 2026, with a cumulative rate of 24.85% over the first nine months of the year. Amor predicts it will close between 35% and 40% by the end of December, rendering promised subsidies and credits for young people and vulnerable families unfeasible.

For Amor, the issue isn't technical but structural: "Unless all those barriers are removed and absolute freedom is granted to the sector, the situation is akin to the land issue. There are clear limitations imposed by the system, preventing the economy from functioning and energizing."

The official housing deficit exceeds 900,000 units, and in 2025, the regime completed only 2,382 of the 10,795 planned units, a mere 22% fulfillment rate. Against this backdrop, Amor concludes that the new law doesn't change the fundamental issue: as long as the Communist Party dictates who lives where and how many properties each Cuban can own, the sector will remain stagnant.