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The rising cost and poor quality of housing have emerged as major concerns during consultations for the 2026–2027 National Budget, with young people warning that the current system is pushing an entire generation toward lifelong renting.

One youth participant described housing as “a big issue,” pointing to what they see as a lack of effective regulation in the market.

He says there is a growing mismatch between the cost of rent and the standard of housing being offered.

The concern goes beyond affordability, with warnings that without government intervention, long-term impacts could be severe.

“We see houses costing thousands of dollars with poor facilities, and I hope that this government could consider that in your budget. If steps are taken to regulate the housing market rather than leaving it to market forces, many people are forking out and digging deeper into their pockets to pay rent for very substandard housing.”

Minister for Finance Esrom Immanuel says rising rental costs are largely being driven by a shortage in housing supply, despite existing controls on residential rents.

Responding to concerns raised during the consultations, Immanuel acknowledged housing as a key issue but stressed that demand is currently outpacing supply.

He said they are actively working to address the shortfall through agencies such as the Housing Authority and the Public Rental Board, although progress has been gradual.

“The government has been encouraging landlords to make their land available for development. It also provides subsidies and assistance, including pathways for landlords to access financing.”

To accelerate development, the government is encouraging landowners to open up land for housing projects, supported by subsidies and improved access to finance.

“Today we met with one of the banks, and they confirmed funding of about $10 to $15 million in housing developments, with a pipeline of around $80 million. That’s a positive sign that more land is being unlocked for housing.”

However, he pointed out that the rising cost of building materials most of which are imported remains a major challenge.

He adds that this is one of the country’s key weaknesses, and they are now looking at more affordable housing models. Agencies such as the Housing Authority and the Public Rental Board, along with private sector players, are also exploring cheaper construction options.

The minister says these combined efforts aim to gradually ease pressure on the housing market and improve affordability for Fijians.