Housing sector

Rising material prices cripple construction in the housing sector

Santiago, DR.

Rising prices for cement and other building materials increased construction costs with its consequences of paralysis of small cities.

In this regard, Landy Colón, president of the Cibao Home Builders and Developers Association (Aprocovici), said that the situation significantly affects the sector.

According to Colón, at the start of the pandemic in 2020 gray cement roofing cost RD$315 in hardware stores, but in December 2021, its cost has risen to RD$425.

According to Landy Colón, President of the Cibao Association of Home Builders and Developers (Aprocovici), in his view, this translates to a 35% increasewhich poses a threat to the construction sector.

Likewise, he denounced that it triggers the total cost of works, affecting builders and those interested in acquiring houses and other real estate.

He expressed that this percentage is assimilated to the primary investment which also suffers from the increase in the total cost of the projects. Consequently, he represents a challenge and a discouragement for people who had the goal of building their houses at that time.

Unjustified
Landy Colón believes that since cement is a locally produced product, such an increase is not justified.

At the same time, he expressed that fewer external factors intervene in the price of cement since its distribution cycle is shorter, leaving aside freight and other aspects that affect the cost of different materials.

Also, the prices of block, rods, gravel, gravel, nails, wood, sand, zinc plates and other materials have increased.

Affected workers
The Cibao Federation of Construction Workers’ Unions claimed that this situation affects the working class of this sector, such as masons, mixers, carpenters and others.

The entity argues that many construction workers are unemployed because small projects are crippled due to the problem.

Many people who have built houses and premises have had to put them on hold for the time being because the resources are not enough to continue building them, according to those concerned.

This affects sectors of the middle and working classes who wanted to build their houses to free themselves from the hassle of paying rent.

The prices of construction materials require local and imported inputs for their manufacture, the most important weight being the price of oil and its derivatives, also used for transport.