Proposed Luxury Megaproject Could Remake Cabo Rojo and Price Locals Out

Puerto Rico’s Centro de Periodismo Investigativo (Center for Investigative Journalism) reports on the potential consequences of the Esencia project in Cabo Rojo on the housing crisis in the territory:

The CPI found that the median sale price of properties in Cabo Rojo rose from $129,500 to $200,000 between 2019 and 2024 — a 54% increase — after analyzing sales data posted on the real estate platform TasaMax. The Esencia project was announced in May 2024.

In transactions that included an appraisal, the median appraised value increased from $134,450 to $216,000 over the same period — a 61% jump.

The spike in Cabo Rojo home prices is shrinking the chances for middle-class and low-income families to find a home in a market that was already competitive, the investigation found. A shortage of affordable units, sales above appraised value and the lack of effective government programs to make rentals or homeownership accessible have all compounded the pressure.

The project has also attracted opposition due to the potential environmental consequences in the area.