Brazil's Minha Casa Minha Vida housing program faces cost crisis and cuts, endangering 125,000 homes

A study by FNNIC and BCB Inteligência em Dados warns that inflation in basic construction inputs is jeopardising the delivery of more than 125,000 units of the Minha Casa Minha Vida (MCMV) program in Brazil's North and Northeast regions. The gap between federal funding and real construction costs threatens investments of over R$ 14.5 billion, with material prices such as copper (+64%), welded wire (+54.1%) and PVC tubes (+33.2%) soaring. The study proposes a new price‑adjustment index (MCMV FAR) combining INCC‑DI, regional CUB and IPCA to re‑balance contracts, estimating a needed injection of about R$ 2.57 billion to preserve the programme.

Meanwhile, housing movements in Goiás are pressing the Lula administration to raise the selection target from 35,000 to the 98,000 eligible projects submitted. Activists warn that more than 2,500 families in the state could lose their chance at a home if the current cut‑down plan proceeds. Demonstrations on the Esplanada dos Ministérios have called for a meeting with President Lula to address the shortfall and protect low‑income families awaiting housing.

Both the cost‑inflation challenge and the protest over contract cuts underscore growing pressure on the federal government to adjust funding mechanisms and expand allocations to avoid a large‑scale slowdown in Brazil's public housing delivery.