Military members, families, and others attend the Cope North 24 event at Andersen Air Force Base on Feb. 22, 2024.
Photo by Frank San Nicolas/The Guam Daily Post
HAGÅTÑA (The Guam Daily Post) — With the number of military service members, dependents, and contractors expected to grow substantially over the next decade, local government leaders and military officials have been searching for answers on how to make room in Guam’s already tight housing market.
The Department of Navy and Joint Region Marianas on Saturday announced the launch of a new housing initiative “to ensure service members and their families are provided sufficient homes while stationed on Guam.”
The announcement said that what’s needed are two- to four-bedroom homes for military families and apartments and facilities for single service members that can be available as early as 2028, with more homes to be delivered by 2032.
“To best meet the needs of service members, at least 75% of proposed housing should be located in Guam’s central island region,” the announcement said.
The military is planning for a two-phase initiative.
In Phase 1, the Navy is seeking information from developers on available homes and land that could be used for new housing. Phase 1 responses are due Oct. 10.
In Phase 2, selected developers will be invited to provide detailed housing proposals. The expected release of Phase 2 is in late 2025/early 2026, based on Phase 1 responses.
The Navy said it is open to flexible partnership options and different partnership models, including lease, lease-to-purchase, or purchase agreements, to ensure the best value and fastest delivery of homes.
“This effort is not just about meeting housing numbers,” said Rear Adm. Brett Mietus, the commander of Joint Region Marianas.
“It’s about ensuring our military members have the quality of life they deserve,” said Mietus. “We must explore every avenue, from innovative partnerships and efficient construction to maximizing existing resources.”
“Our focus is on supporting the warfighter so they may focus on the mission. And that’s critical to the security and prosperity of the Indo-Pacific,” he added.
Siska Hutapea, president of Cornerstone Valuation, a leading real estate analysis firm, said the military population is expected to total more than 23,000 or an additional 11,836 people, by the end of fiscal year 2027.
“The additional housing needs would range from 3,000 to 5,900 units, based on (a) rough calculation of an average of two to four members in a household,” Hutapea said. “This will be a challenge to fulfill. Hence the military requesting (a) proposal.”
She said there are over 600 existing individual apartment/single-family dwelling units available for rent on the Guam Association of Realtors’ multiple listing service. “This does not include some latent supply in the Leo Palace Resort, the former Pacific Star Hotel, and perhaps the former Sherwood Hotel,” Hutapea said.
“The high construction cost will push rent upward, and pressure on housing demand will be insurmountable. This housing initiative will hopefully alleviate the pressure by inviting developers to meet the demand,” she added.
But Guam-based research institute Pacific Center for Island Security has been warning that the military did not fully consider the impact of the military influx on local housing costs.
“This (request for proposal) reflects a failure of the military to adequately plan for its mission in Guam. It reflects the continuing pattern of expecting the people of Guam to bear the cost — in increased rentals and increased home prices — for this failure in military planning and funding,” said PCIS Chairman Robert Underwood in a statement Sunday.
PCIS said there are no new funds in this year’s proposed federal budget for Guam military housing. “If the military can’t fund on-base housing for its personnel, it needs to rethink the scale of its mission in Guam,” said Underwood, the island’s former delegate to the U.S. Congress.
The solicitation has been posted at https://sam.gov/workspace/contract/opp/6bfcf42fdd8a4499a496051e76373c1f/view with initial responses due by Oct. 10.
Developers interested in participating must respond during Phase 1 to be considered for Phase 2, the announcement said.
