The costs of new home construction increased by 13.4% in July, compared to the same month in 2021, with the prices of materials and the cost of labor rising by 17.5% and 7.7%, according to this report this Friday from the INE.
According to data from the National Institute of Statistics (INE), “in July 2022 it is estimated that the construction costs of new homes have increased by 13.4% year-on-year, 0.9 percentage points more than what was observed in the previous month.”
In the month under analysis, the INE states that the prices of materials increased by 17.5%, accelerating 0.9 percentage point from the previous month, and the cost of labor increased by 7.7% (vs. 6.8% in June).
The cost of materials contributed 10.2 percentage points to the formation of the interannual variation rate of the New Housing Construction Cost Index (ICCHN), which compares with 9.7 percentage points in June, while the labor component increased its contribution to the 3.2 percentage points (2.8 percentage points in the previous month).
Among the materials that most contributed to this evolution, The INE highlights ceramic products, with year-on-year growth of around 70%diesel showing year-on-year growth of over 30%.
For its part, wood and wood derivatives, cement, cork agglomerates and tiles, carpentry work and PVC pipes show year-on-year growth of over 20%.
In a chain change analysis, the ICCHN’s monthly change rate was 1.9% in July, with material cost and labor cost increasing 1.9% and 1.8 %, respectively.
Material and labor components contributed 1.1 percentage points. and 0.8 percentage points, respectively, for the formation of the monthly variation rate of the ICCHN (-0.8 percentage points and 0.9 percentage points in June, in the same order).
Source: Observadora
