The recent hike in steel tariffs has led to a significant increase in construction costs, with experts warning that it could result in a 3.5% price surge for homes in Mexico.
Mauricio Morales Greene, president of the Yucatán delegation of Canadevi, the National Chamber of the Housing Development and Promotion Industry, expressed concern about the impact of the tariff increase on the housing sector.
“We believe that collaboration between developers and domestic suppliers is key to maintaining competitiveness and price stability in the sector,” said Morales Greene. “Housing is an engine of economic and social growth, and therefore we must ensure affordable inputs that do not hinder its dynamism.”
The steel tariff hike has forced many developers to adjust their budgets, renegotiate supply contracts, and face delays in project execution. Steel is a critical input for construction, and the price increase could translate into higher costs for homeowners.
Morales Greene emphasized that the pressure on the local industry increases its dependence on imports, which are more expensive and have slower delivery times. This, he said, directly affects the planning and execution of construction projects.
The leader of the home builders highlighted the importance of establishing mechanisms to protect housing production in the face of these adjustments in inputs. “It is essential to anticipate cost scenarios to offer financing solutions that maintain the viability of housing projects,” he emphasized.
Canadevi Yucatán is adopting a balanced approach, recognizing the need to strengthen the national steel industry while proposing mitigation mechanisms such as sectoral exemptions, tax incentives, or compensation schemes targeted at social and middle-income housing projects.
The housing sector represents approximately 5.3% of the national GDP and generates hundreds of thousands of jobs. Morales Greene stated that his organization is working on analyzing different steel cost scenarios and their projected impact on housing prices.
Temporary incentives that specifically support social interest projects are also being discussed with tax authorities, he said. Regular communication with industry stakeholders is essential to address concerns about an uncertain economic scenario and guarantee the construction of affordable housing, especially when demand remains high in the country.
Source: Diario de Yucatan
