Whenever a Jamaican property sells for a price that surprises people, there is usually one explanation: “A foreigner buy it!”

But is the diaspora really driving up Jamaica’s housing prices, or is there a bigger economic story?

One of the biggest forces in real estate is demand versus supply. When demand grows faster than the number of available homes, prices rise.

That brings us to what I call the Diaspora Price Effect, DPE: what happens when buyers with stronger purchasing power enter a market where housing is limited.

A buyer earning Jamaican dollars may have a certain budget. But a Jamaican living overseas and earning US dollars, Canadian dollars or British pounds may be able to spend significantly more.

When both buyers compete for the same property, the person with greater purchasing power can push the price higher. That’s not unique to Jamaica. That’s how markets work.

At the Jamaica Diaspora Conference in June, Prime Minister Andrew Holness encouraged Jamaicans overseas to purchase their first or second homes in Jamaica.

Some people may ask: Why encourage more demand when many Jamaicans are already struggling to afford homes?

Because diaspora investment also brings benefits. It provides foreign exchange, supports construction, creates jobs and stimulates mortgage lending. Greater private-sector investment could also allow the National Housing Trust to focus more on affordable housing.

So, the issue isn’t whether diaspora investment benefits Jamaica. It does. The issue is how we manage the pressure it creates.

That pressure is strongest in communities combining lifestyle, accessibility and investment potential.

In St. Ann, areas such as Drax Hall, Richmond and the Ocho Rios corridor have attracted diaspora buyers because of their modern housing, security and tourism access.

In St. Catherine, Port Ridge Estate, Oak Estate, Caribbean Estate and Caymanas Estates appeal to buyers seeking more space while remaining close to Kingston.

And this is measurable. According to a Jamaica Observer report, VM Group recorded a 25 percent increase in mortgage loans to diaspora real estate investors between 2024 and 2025.

So, “annuh mek-up story.” Diaspora demand is becoming a real force in Jamaica’s housing market.

But the diaspora is not the root cause of Jamaica’s affordability problem. The deeper issue is supply.

If housing supply grew alongside demand, additional buyers would not create the same pressure on prices. The problem isn’t that too many people want homes. It’s that Jamaica doesn’t have enough homes priced within reach of local incomes.

So should incentives encourage diaspora investors to build new housing rather than only purchase existing homes? Or should the government move more aggressively to expand supply?

The answer isn’t to discourage investment. It’s to create a market where investment can grow while local Jamaicans can still participate.

And that’s The Bottom Line!