Two countries in the same statistic
| Indicator | Figure | Source |
|---|---|---|
| Housing deficit | 150,000 homes (MIVIOT, 2024) or 322,755 (Chamber of Commerce, 2026) | Panamá América |
| Where the deficit is | Almost 100% of households in the comarcas; Darién 62.3%; Herrera 60.9%; Los Santos 52.9% | IX Quality of Life Report, Cciap |
| Homes with deficiencies (2023 Census) | 60,679 without drinking water, 58,032 without electricity, 65,379 with dirt floors | INEC via La Prensa |
| Construction permits, January-April 2026 | 417.2 million dollars, +43.5%; 252.8 million residential | INEC via La Estrella |
| New home sales 2025 | 4,020 units, -34.4%; 2,866 according to 4S Real Estate, -40% | Convivienda, La Prensa |
| Unsold inventory, end of 2025 | 2,536 units: 1,279 in Panama City, 1,237 in Panamá Oeste | Convivienda |
| Average monthly salary | 756 dollars; urban 788.70; rural 581.40 | INEC, Labour Market Survey |
| Foreign residential investment 2025 | More than 841 million dollars, +53% on 2019 | Indesa via Infobae |
The deficit is not where the building is. The comarcas, Darién and the dry arc concentrate the homes without water, without power or with dirt floors. Residential construction, by contrast, concentrates in Panama City, which in January 2026 accounted for 93.5 million of the country’s 115.6 million in permits. In the capital a square metre of new housing sells for between 3,673 dollars in San Francisco and 4,626 in Santa Ana; on the secondary market the average is 1,726.
What the State subsidises and what it cuts
Preferential interest, which subsidises up to 85% of the mortgage rate on homes up to 120,000 dollars, was reformed twice in 2025. The Cabinet proposed lowering the cap to 100,000 dollars; the National Assembly kept it at 120,000. Since January 2026 the bands in Panama and Panamá Oeste run from 5 points for eight years on homes up to 50,000 dollars to 4 points for seven years between 80,000 and 120,000. The State carries a debt to the banks under the previous regime of between 170 and 271 million, depending on the source.
Meanwhile the Solidarity Housing Fund, the 10,000 dollar first-home bonus, ended in June 2024 with 14,799 bonuses pending and 32.6 million owed. The Housing Ministry’s budget went from 134.7 million in 2025 to 79.8 million in 2026, and the social housing construction line fell 56%, from 58.4 to 25.4 million. In September 2026 the government launched a new programme, “Abono Pa’ Ti”, with a 3,000 dollar down payment for homes up to 80,000 dollars and about 30 million a year.
Who buys and at what price
| Segment | Price | Who buys |
|---|---|---|
| Social housing | Up to 80,000 dollars | Subsidised families; supply concentrated in Panamá Oeste |
| Housing with preferential interest | 80,000 to 120,000 dollars | Salaried middle class; 81% of Convivienda sales |
| Apartments in the capital | 3,700 to 4,600 dollars per square metre | 57% foreign buyers; median US purchase 259,000, European 310,000 |
In the first quarter of 2026 foreign investment in housing reached 205 million, up 17%, and the United States became the top origin, ahead of Colombia and Venezuela, which led in 2023. The foreign buyer pays on average more than double the price of the home a Panamanian buys with a subsidy, and does not compete for it: they compete for urban land, which is the same.
The underlying question
Panama builds more and sells less. Permits are up 43%, sales are down 34% and unsold inventory stands at 2,536 units, almost all houses under 120,000 dollars in Panamá Oeste and the capital. The deficit, meanwhile, is in Ngäbe-Buglé, Darién and Herrera, where neither credit nor developers reach. The model works for the foreign investor who buys in Santa Ana and for the developer who sells with preferential interest in La Chorrera. It is not clear who it works for in the rest of the country, and the 56% cut in social housing suggests the State is not clear either.
What nobody has answered yet
- How many of the 2,536 unsold homes are affordable for a household on the average salary? Convivienda publishes inventory by price, not its relation to the income of the households looking for them.
- How much does the new preferential interest regime cost the treasury each year? No official source has put a figure on the annual cost of Law 481.
- What part of the comarcas’ deficit is housing and what part is water, power and sanitation? MIVIOT does not publish the split between quantitative and qualitative deficit.
Frequently asked questions
What is Panama’s housing deficit?
150,000 homes according to the Housing Ministry in 2024, or 322,755 according to the Chamber of Commerce’s IX Quality of Life Report in 2026. It is concentrated in the comarcas, Darién, Herrera and Los Santos.
How much is sold and how much is left unsold?
In 2025, 4,020 new homes were sold, 34% fewer than in 2024, and 2,536 were left unsold, almost all houses under 120,000 dollars in Panama City and Panamá Oeste.
How does preferential interest work from 2026?
It applies to homes up to 120,000 dollars. In Panama and Panamá Oeste the State subsidises 5 points for eight years up to 50,000 dollars, 4.5 points for seven years between 50,000 and 80,000, and 4 points for seven years between 80,000 and 120,000.
How much do foreigners buy?
More than 841 million dollars of housing in 2025 and 57% of sales above 120,000 dollars. The United States has been the top origin since 2026.
Related articles
- Buying property in Panama as a foreigner
- Horizontal property in Panama: how a PH works
- Minimum wage in Panama: how it works
Sources
- Panamá América, MIVIOT and the 150,000 home deficit.
- Panamá América, Chamber of Commerce IX Quality of Life Report.
- La Prensa, homes with deficiencies in the 2023 Census.
- La Estrella, construction permits January-April 2026.
- La Prensa, January 2026 permits.
- República, Convivienda 2025 annual report.
- La Estrella, Convivienda delivered 4,020 units in 2025.
- La Prensa, prices per square metre according to 4S Real Estate.
- Panamá América, average salary in the Labour Market Survey.
- KPMG, Law 481 of 2025 on preferential interest.
- La Prensa, proposal to lower the cap to 100,000 dollars.
- Nexo, State debt to banks for preferential interest.
- La Prensa, Abono Pa’ Ti programme.
- La Estrella, closure of the Solidarity Housing Fund.
- La Prensa, MIVIOT budget cut.
- Infobae, foreign residential investment according to Indesa.
- La Prensa, historical series of international buyers.
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