Argentina construction sector faces crisis amid sales slump

The construction sector in Argentina is experiencing a significant stagnation, severely impacting local building material suppliers. According to data from the National Institute of Statistics and Censuses (INDEC), the sector saw a 4.4% year-on-year decline in August 2026, with specific materials like asphalt and plaster dropping by 18.4% and 17.0% respectively.

Local merchants report sales decreases between 30% and 40%, citing the paralysis of public works, limited access to credit, and reduced consumer purchasing power as primary drivers. Business owners have noted a shift in consumer behavior, where families no longer stockpile materials as investments, and many have been forced to reduce staff to maintain operations.

In response to housing challenges, Banco Hipotecario has expanded credit conditions for modular homes. The bank extended loan terms from six to eight years to lower initial installments and improve accessibility. This initiative supports a growing market of industrialized housing, involving a network of over 145 companies across the country.