Reason Foundation, April 2025
Puerto Rico faces some of the most significant affordability challenges in the United States, yet it is often overlooked in national housing policy discussions. While many of the same problems—such as rising home prices, displacement, and aging infrastructure—are present in various states, Puerto Rico’s territorial status introduces unique constraints that shape its housing challenges. For over a century, Puerto Rico has existed in a legal and economic limbo, subject to U.S. federal laws while lacking full political representation.
This ambiguous relationship, where Puerto Rico is governed by the U.S. but not fully integrated, has contributed to market distortions, driven up costs, and restricted economic growth. Policies like the Jones Act and federal oversight through the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA) have made it more difficult for Puerto Ricans to afford housing. Additionally, the archipelago’s limited autonomy hinders the development of local solutions.
