The cost of building housing in Mexico could increase by 3 to 4% this year after the introduction of 25% of American prices on steel and aluminum, the Mexican construction industry (CMIC) announced on Tuesday.
On March 11, the United States Prices imposed 25% On all imports of steel and aluminum, of which Mexico is a high -level supplier with Canada and Brazil. President Trump threatened to impose prices on other Mexican goods from April 2, which could contribute more to this increase in costs.
The President of the National Chamber of the Housing Development and Promotion Industry (Canadai) Carlos Eduardo Ramírez Capó said that the prices had not yet slowed investments in housing projects, although the developers take greater caution.
“Damage will be directly proportional to the duration of the prices if they are imposed. If we have an escalation, if we do not reach an agreement and they remain in place for six months or a year, there will be an impact,” said Ramírez in an interview with the newspaper El Economista.
Meanwhile, the CEO of Mexican Real Estate Bank (BIM) Rodrigo Padilla Quiroz said that no project had been canceled so far, although the developers were cautious.
Padilla stressed that it is not only the increase in the costs of materials that should concern Mexico, but also the impact of the United States’s commercial policy on the construction sector.
“The greatest concern is a slowdown in employment (domestic). The greatest impact (prices) is on families because it postpones their ability to generate real estate wealth. Without a doubt, the most serious problem is that it will affect the purchasing power of the Mexicans,” said Padilla.
Does Mexico have a shortage of housing?
Some developers also suggest that the incentives to reactivate construction are lacking in Mexico, which is experiencing a shortage of housing of around eight million houses.
In 2024, 128,147 houses were built in Mexico, which is the lowest level recorded since the start of the single housing register in 2013. Three out of 10 residential construction projects (33.62%) in 2024 were low -income dwellings, which had an average value of 521,484 pesos (US $).
In October, Mexican President Claudia Sheinbaum announcement plans to build a million new houses throughout the country over the next six years with an investment of 600 billion pesos (29.7 billion US dollars), which could help strengthen the Mexico housing sector.
Impact on industry
Mexico produced 18.2 million tonnes of Steel in 2024Against 19.85 million tonnes in 2023, largely due to lower demand. It exported three million tonnes in 2024, with 2.3 million tonnes going to the United States
Mexican steers plan to add more than five million tonnes of steel production per year to the first half of 2026, according to the publication of the Argus Media industry. However, with a potential decrease in demand abroad, Mexican acids can start to feel the impact of a slow internal market.
With reports from The Economist And Argus Media
