Cuba: The Birth of a Real Estate Market [By Managing Editor, REALTOR® Magazine]

By Wendy Cole, Managing Editor, REALTOR® Magazine/

I just returned from ten days in Cuba. It was a personal trip that offered a fascinating glimpse into one of the country’s great conundrums: how to balance people’s desire for greater economic freedom without compromising the country’s deeply-held socialist principles.  My visit, as part of a group, was enabled by the “people-to-people” license program restarted last fall by the Obama Administration. (Such visits to the island-nation are designed to foster meaningful cultural exchange between U.S. citizens and Cubans. They were initiated during the Clinton years and suspended while Bush was in the White House.)

I was particularly intrigued to see how Cuba’s new property law that allows citizens and permanent residents to buy and sell real estate was playing out. Ushered in with much fanfare in November, this market-oriented reform is a major shift from a half-century of socialist, state-run housing policies.

What’s evident wherever you go in the country (and we traveled to five cities): The housing stock is aging and badly decaying. The 50-year trade embargo with the United States and the loss of the Soviet safety net in 1991 mean Cubans must make do with what they have or can make, notwithstanding the contributions from the few countries they maintain economic ties with.  (Plywood and light bulbs are sorely needed, for example.) Still, the beauty of the neo-gothic, colonial architecture still comes through in many places, along with the peeling paint and crumbling walls.

Our personable and knowledgeable guide, Mirelys Gonzalez, is a typical Cuban home owner.  She lives with her husband and five-year-old daughter in a two-bedroom flat, constructed on top of the Havana home she grew up in. The extreme housing shortage means that multi-generational living arrangements are quite common. It also means that divorcing couples are more apt to erect a wall within the home they have shared and continue to occupy the same property long after the marriage has ended. The reason for all this togetherness is that no one can be assured of finding a new affordable place to live. More >>