Developer points to pending bills, federal program as help for housing crisis

The military’s request for proposals for housing outside of existing military bases does not have to lead to a crisis in housing prices, said Carlos V. Camacho, executive director of Micronesia Community Development Corp. He said that narrative doesn’t have to be the reality, but that requires good policy and proper and timely implementation of a federal program. 

The 38th Guam Legislature on Oct. 3 is set to tackle the issue with two significant bills — Bill 164-38 and Bill 7-38 — both drawing bipartisan support from leaders including senators Tina Rose Muña Barnes, Joe S. San Agustin, William A. Parkinson, Anthony Ada and Christopher Duenas. Camacho called the cross-party cooperation “a very good thing for the people of Guam.” San Agustin introduced Bill 7 and Barnes introduced Bill 168. 

A third leg of the stool that could help keep Guam’s housing scene from tipping over is the Guam Community Development Block Grant — a $500.8 million federal grant from the U.S. Department of Housing and Urban Development. The grant is meant to address long-term recovery and mitigation needs in Guam following Typhoon Mawar. GHURA branded the grant program "Fix in Six.” Over a six-year period, these funds will support projects in housing, infrastructure, economic revitalization, and mitigation.  

Guam is facing a severe housing crisis, driven by surging demand, rising costs and the expanding footprint of the U.S. military’s housing needs. Prior lack of planning for public housing or to encourage development by various administrations in Guam has not helped. 

Median home prices now range from $600,000 to $800,000, about double what they were a decade ago, housing and real estate development professionals have said. More than half of residents are considered “overburdened,” spending over 30% of their income on housing, and fair market rent exceeds $2,100 a month — well above what many families can afford.

With inflation continuing to drive up the cost of building materials and supplies, a labor shortage, and challenges like the COVID pandemic and recent typhoons, have all come together to drive up the cost of building a home.

Added pressure from the Defense Department’s plan to acquire 2,400 new housing units has further tightened the market, making it even harder for local families to secure affordable homes. Workforce expansion and disaster recovery efforts have pushed demand to record highs. In late 2024, Fernando Estevez, deputy director of the Guam Housing and Urban Renewal Authority, said they estimated Guam needed 9,908 additional housing units by 2025 to keep up with demand, which is driven by population growth, existing demand, and military construction projects. The U.S. Navy in Guam issued a Request for Proposals for housing for accompanied and unaccompanied personnel, more than a year after a Request for Information appeared.

According to RFP N4019225RP0030 as featured on sam.gov, Phase 1 responses are due Oct. 13 to Naval Facilities Engineering and Systems Command Pacific. A number of respondents will be selected from those responding to Phase 1 and invited to submit detailed proposals in November in Phase 2.  The total unaccompanied housing requirement is approximately 800 units and the total family housing requirement is approximately 1,600 units based on the current projected end-states for force flow in the mid-2030s.

“The military’s request for proposals for housing outside of existing military bases does not have to lead to a crisis in housing prices,” Camacho said.

According to Camacho and other housing advocates, the shortage stems from a lack of supply, high construction costs, outdated zoning laws and lengthy permitting processes. Young adults struggle to move out, often staying with extended family or leaving the island altogether due to limited options. Real estate leaders say prolonged approval periods mean that by the time housing is built, prices for materials and labor may have increased, further deepening the affordability problem.

Bill 164, also known as the Affordable Housing Streamline Zone Act of 2025, “represents a timely and much-needed response to Guam’s escalating housing crisis,” said Elizabeth Duenas, past president and federal political coordinator of the Guam Association of Realtors and broker at RE/MAX Diamond Realty.

“Guam’s housing shortage has been compounded by rapid population growth due to military expansion and limited land availability,” Duenas told senators at a public hearing. “At the same time, rising construction costs, labor shortages and prolonged permitting and zoning processes have made the development of affordable housing increasingly difficult. Bill 164-38 addresses these challenges head-on with a thoughtful, comprehensive strategy that balances speed, sustainability and public accountability by streamlining zoning conversion and modernizing the permitting framework.”

Duenas said the bill removes many of the bureaucratic delays that stall affordable housing projects. It also ensures that new developments remain affordable and benefit low- to moderate-income families — the groups most harmed by the affordability gap.

Camacho echoed those concerns, saying slow zoning and permitting processes mean the price of building a home or facility can surge during the wait for approvals. In the past, some developers turned to “spot zoning” to speed up projects, but that practice led to fragmented development and further delays, he said.

“This bipartisan bill creates a consistent zoning policy framework based on housing types — R1 for single-family dwellings or R2 for multifamily dwellings,” he said. “The bill creates a consistent, transparent pathway for developers to deliver affordable housing that is specifically targeted to households ranging from 50% to 150% of the area median income.”

But experts warn that legislation alone won’t fix the crisis. Camacho stressed the need for collaboration between local and federal agencies, and pointed out the Guam Community Development Block Grant, which provides $500 million for affordable housing initiatives.

“Progress requires making sure federal programs like the Guam Community Development Block Grant are administered properly and funds are directed to scalable projects serving families most in need,” he said.

The Legislature’s second bill, Bill 7-38, would help increase available land through the Chamorro Land Trust program and cut the cost of aggregate material for construction. The bill directs the Chamorro Land Trust Commission to seek competitive bids for mass grading and mineral extraction in Mangilao, creating land for new homestead lots and public infrastructure. Lawmakers say the project could generate at least $6 million in revenue during six years. mbj