A report on ‘The Future Housing Needs’ conducted by Statistics Jersey reveals that the Jersey housing market is facing a crunch time over the next three years as the number of homes needed is expected to fall short by 2,750 properties.
The need for more homes has pushed up rents and meanwhile house prices are now close to beyond the means of average workers. This has been challenged by islanders, who proposed a rent cap protesting unfair rents on the island.
The Future Housing Needs report by Statistics Jersey notes the private housing market is facing a shortage of three-bedroom homes, while the rented sector is running out of two-bedroom homes.
The only property type likely to have a surplus is homes with four or more bedrooms.
The biggest shortfall is expected to be for owner-occupied three-bedroom homes, with demand outstripping supply by 960 properties.
Migration is blamed for the problem, with the report suggesting if more than 700 people arrive a year, the island faces a shortfall of 300 registered accommodation properties over the next three years.
Overall, the report calculates 10,360 homes will come to the market by 2021, but demand is for 13,040 properties - with a third sought by migrants.
“Over the next three years, over two-thirds (68 per cent) of the total potential demand is from households planning to move within Jersey. Under current migration trends, in-migrant households will account for around a third (32 per cent) of total demand over the next three years and for over half (53 per cent) of the demand for one-bedroom flats,” says the report.
The report also expressed concerns about the number of concealed households - those living with parents, friend or relatives - who want to buy a home but cannot afford to do so. An estimated 250 households are expected to move to rented homes rather than buy their own homes.