The House Bill 90 (PC90) proposes to impose a price freeze within option-to-purchase contracts in Puerto Rico. While the measure intends to protect homebuyers from market volatility, the Puerto Rico Association of REALTORS® (PRAR) has expressed strong concerns about its potential unintended consequences.
Concerns About Market Impact
PRAR highlights that although consumer protection is essential, PC90 may generate the opposite effect by:
- Discouraging private investment in new housing projects
- Increasing development risk during an already challenging period for construction
- Reducing the number of new housing units available to buyers
- Exacerbating the existing housing shortage
PRAR’s Recommendation
Instead of a rigid price freeze, PRAR recommends exploring reasonable and flexible price-adjustment mechanisms. These alternatives could safeguard buyers while still allowing developers to adapt to changing construction costs and market conditions.
A Call for Balance
PRAR emphasizes the importance of crafting legislation that protects consumers without weakening the economy or limiting housing availability, especially as the island continues to face a shortage in affordable units.
