Gentrification and

Land Speculation in Vieques

What Is Gentrification?• Defined as the restoration and upgrading of

deteriorated urban property by middle-class or affluent people, often resulting in displacement of lower income people

• Land speculation, defined as the act of selecting investments with higher risk in order to profit from an anticipated price increase, is a major cause of gentrification. As stated in the “Emergency Declaration on Speculation in Vieques,” “the speculative process of buying and selling properties…contributes to the displacement of [the] population.”

• Not only do speculation and the resulting gentrification cause a loss of local culture, but also a loss of power for the indigenous peoples

Gentrification in Vieques

• No navy→more tourism→higher demand for real estate→higher prices

Potential Harmful Effects

• Locals forced out/ loss of power• Loss of culture• Ghost communities• Fewer business opportunities• Money is made by outside

investors rather than the local people

Motives for…

Selling• Healthcare• Not primary

residence• Improve

economic situation

• Family ties elsewhere

Buying• Inexpensive• Investment• Vacation/2nd

home• Rental property

What are the effects of gentrification on Vieques?

• Real estate price boom• Fewer locals can afford to buy

property• Outsiders control the market• Limited housing for locals in need

-Section 8 waitlist-Supply & demand

COMUNIDAD AvgHomePrice NumberHomesForSale HomePriceRangeBarriada Monte Santo 451,350 10 165,000 - 700,000

Colonia Lujan 520,000 4 195,000 - 795,000Colonia Puerto Real 785,830 5 395,000 - 995,000

Destino 327,500 4 155,000 - 595,000Esperanza 353,800 15 195,000 - 595,000

Isabel Segunda 256,830 12 55,000 - 550,000Santa Maria 221,862 8 90,000 - 425,000Las Marias 200,500 10 85,000 - 500,000Tortuguera 135,000 1 135,000 - 135,000

PRRA 468,300 3 425,000 - 530,000Monte Carmelo 204,400 15 58,000 - 349,000

Bravos de Boston 486,829 24 55,000 - 1,275,000Florida 219,170 6 125,000 - 285,000

Villa Borinquen 297,550 28 110,000 - 895,000Pilon 975,000 3 975,000 - 975,000

Martineau 1,145,000 4 680,000 - 1,600,000Los Chivos 564,000 5 250,000 - 825,000

Property Titles

• Untitled land common - Especially in Bravos de Boston, Villa Borinquen, and Monte Carmelo

• Problems:– Mortgages are impossible to obtain– Claims to land are easily questioned– No college loans– Inefficient distribution of titles– The property is not taxable

Property Taxes

• Revenue from titled propertytitles→taxes→$→government

funding for:-Infrastructure-Schools-Vocational training, etc.

• Primary residence exemption-1957 tax regulations

• Resale can be limited when titled

So how should we react?

• Community suggestions - Community forums, work together - Moratorium restricting sale of property for first five years

Pros: limits speculationCons: feasibility

- Rent control- Work towards maintaining

Viequenses’ sense of community

How to Preserve the Community

• Healthcare availability• Access to affordable housing• Improve education system• Community awareness and

collaboration• More jobs and business

opportunities/stronger economy• Small scale sustainable tourism

Options

Community Land Trusts1. A group of community members purchases property 2. They hold the land, but sell residential and commercial buildings, thus allowing buyers to pay only the price of the structure3. Limited equity policies restrict resale prices to maintain long-term affordability

Options

Community Land Trust Benefits-Democratic land ownership by locals-Land removed from market to maintain long-term affordability-Enables low-income residents to gain economic interest in the success of the community-Collaborative effort towards planning and development-Promotes resident involvement, local democracy, and active citizenship

Options

Develop sustainable tourism- Maintain environment- Improve economy- Improvements in infrastructure- Connections to land, culture, and history

Conclusions

• Goals• Methods• Obstacles

“An economy besieged by foreign interests, a government incapable of alleviating the social-economic crisis we live, families vulnerable to the forces of a market, controlled by power financial groups, and individuals with much greater buying power, partly describes the environment in which the ‘real estate’ business operates in Vieques.”

-Committee for the Rescue and Development of Vieques