Trend: house prices fell 9.59% y-o-y in Q2 2017.
Puerto Rico has emerged as the weakest housing market in our global house price survey, amidst continued economic woes, high unemployment, massive emigration, and a near-catastrophic national debt crisis and credit rating downgrades.
Analysis: Puerto Rico’s latest economic downturn has lingered longer than any previous depression.
GDP has contracted every year from 2007 to 2016, except 2012 when the economy grew by 0.5%.
Puerto Rico has lost about 20% of its jobs since 2007. The population has shrunk by about 10%. The poverty rate is now at 45%. Public health and retirement systems are now insolvent. Puerto Rico filed for bankruptcy protection in May 2017, unable to pay its massive debt or provide its citizens effective services.
The housing market has suffered tremendously. After huge annual house price increases in the early 2000s, the housing market came crashing down in 2008. Prices have dropped 37% in real terms from 2008 to early-2017.