Over the past several years, construction costs in Yucatán have risen sharply and all signs point to even higher prices in 2022.
On average construction costs in Mexico have risen between 8 and 15% yearly, but in 2022 this number has already skyrocketed to 17.4%.
A worldwide shortage of building materials, including aluminum and concrete, are to blame.
“There is less of everything on the market these days and getting the right materials has turned into a struggle and this has caused prices to rise considerably,” said Raúl Aguilar Baqueiro, president of Yucatán’s construction chamber of commerce.
The largest rise in construction material costs has long been associated with the price of steel, a trend that is expected to continue for the foreseeable future.
However, these cost increases do not seem to have halted the pace of construction across the state, especially in Mérida and its surroundings.
New housing developments continue to be built in Mérida’s suburbs to serve a growing market demand fueled by out-of-state buyers.
But a new report, “The Costs of Urban Expansion in Mexico,” has found that Mérida’s strategy for growth is alarmingly deficient.
“The growth that Mérida has experienced over the past 20 years is simply not sustainable and will likely result in worsening environmental and social problems,” said Pablo Lazo, co-author of the report.