Building a home becomes more difficult; the ICDV rose 38%

Santo Domingo—Building a house this year is 38% more expensive than four years ago since the Index of Direct Costs of Housing Construction (ICDV), prepared by the National Statistics Office (ONE), stood at 222.78 in March 2024, compared to 161.85 in the same month of 2020.

According to a publication of the Regional Center for Sustainable Economic Strategies (CREES), the cost of single-family houses of one level experienced the highest increase, 0.26%.

Likewise, it indicates that the price that increased the most was that of tools, with an increase of 5.17%.

CREES points out that although nominal wages have increased, the purchasing power of the peso has declined, leaving real incomes practically stagnant.

“This loss of the real value of money translates into higher prices for all goods and services, including materials and labor needed for housing construction,” it adds.

He says that although the shift to a less expansionary monetary policy was reflected in a slower pace of cost growth over the past year, the last four months have seen an upward trend.

They say there is stability.
When asked about the increase in materials, the hardware sector assures that the price of materials has remained stable in recent months, although they recognize that the demand “has dropped a little.”

According to the president of the Dominican Association of Ironmongers (Asodefe), Bolivar Mejia, cement has been stable in price for a few months because it remains at RD$490 a case. This statement contrasts with that of Eliseo Cristopher, president of the Dominican Confederation of Micro, Small and Medium Construction Companies, who said that cement is RD$100 more expensive this year than in 2023, a rise which, he specified, has no justification.

“It has been about four or five months since there has been a rise in materials. The price of rebar has maintained its price, as have the other materials,” said Mejía.

Cristopher predicted an impact, due to cement, on the cost of housing.