The Tribune

By LEANDRA ROLLE

Tribune Chief Reporter

lrolle@tribunemedia.net

A NEW academic study has found that a middle-class family of four in New Providence and Grand Bahama needs over $10,000 a month to sustain a basic lifestyle, with costs in the nation’s capital estimated to be slightly higher than in Grand Bahama.

According to the study, authored by University of The Bahamas researcher Lesvie Archer, families of four in New Providence require a monthly income of $10,200 to support a middle-class standard of living, compared to $10,100 in Grand Bahama.

The slight one percent cost-of-living difference between New Providence and Grand Bahama reflects variations in specific expenses.

For example, while food and “non-food, non-housing” (NFNH) costs are approximately $350 higher in Grand Bahama, housing and utilities costs are $450 lower there compared to New Providence.

“This generates an overall cost difference of $100. Hence, prices differences in factors that composite the total estimate can cancel each other out even when comparing geographically,” the study added.

Expanding on the 2020 Bahamas Living Wages Survey, which calculated minimum living expenses at $4,400 for a family of four New Providence and $5,750 for Grand Bahama, this new research updates the cost-of-living estimates for working-class families, while shifting focus to middle-class standards.

“To account for inflation changes to the current period of interest, the 2024 cost-of-living estimate for a working-class family of four is $5,000 per month in New Providence and $6,600 per month in Grand Bahama,” the study reports.

 “These updated figures accommodate for changes in living standards that are connected to changes in inflation rates since the original data collection and analysis period.”

 Additionally, it found that the cost of middle-class living is over 104 percent higher than the updated expenses for lower-income families in New Providence and 53 percent higher in Grand Bahama.

 Key factors driving this disparity include middle-class families’ preferences concerning housing, shopping locations, and private school education.

 The study estimated that a family of four needs an annual income of approximately $122,400 to maintain a decent middle-class lifestyle in New Providence, while in Grand Bahama, the required annual income is about $121,200.

 While these estimates include basic savings, they do not cover life insurance, private health insurance, national insurance taxes, debt, union dues, or new vehicle purchases.

 Additionally, the study’s estimates focused on rental costs rather than home ownership.

 “On New Providence, prices range from $800 for an unfurnished unit in Stapleton and several eastern communities to $3,000 in Cable Beach.

(Upper-middle income rental homes were distinguished as ranging in cost from $3,000-$8,000 per month and included areas such as Cable Beach, Westridge, Sandyport, and Paradise Island). On Grand Bahama, prices ranged between $1,200 for a two-bedroom in Dolphin Cove to $3,000 in Lucaya Beach.”

 The study follows Anker and Anker’s methodology but also incorporates primary data collected through surveys and interviews, alongside secondary data from international benchmark reports and national statistics.

 According to the report, primary data were collected in March 2022 from designated fieldwork areas in New Providence Island, specifically targeting zones where middle-class families typically work, shop, or live.

 These include communities situated on the outskirts of New Providence, including areas near Yamacraw Hill Road, Cable Beach, Lyford Cay, etc.

 Fieldwork was also conducted in the western part of Grand Bahama, which includes Freeport, Eight Mile Rock, and West End.

 “Other parts of the island are still recovering from damage connected to the 2019 Category 5 Hurricane Dorian. Data was collected on approximately 20 rental units and two stores in Grand Bahama,” the study added.

 The researcher advised that the report could serve as a starting point for shaping policies related to wages, living costs and living standards in the country.