Dominican construction sector faces pressure from rising costs and interest rates

Teodoro Tejada, former president of the Dominican College of Engineers, Architects and Surveyors (CODIA), has called on authorities to take urgent action to protect the construction sector, particularly the housing subsector. He warned that rising interest rates and increasing construction costs are hindering the development of new residential projects and driving up final home prices.

According to data from the National Statistics Office (ONE), the Direct Construction Cost Index (ICDV) showed a year-on-year increase of 6.42% in August 2026 for both multi-family and single-family projects. Tejada noted that these rising costs, combined with expectations of interest rate hikes following potential Federal Reserve actions, disproportionately affect middle-class and low-income families by limiting access to affordable housing and financing.

To maintain investment and economic dynamism, Tejada proposed that the government and private sector collaborate to find alternatives to mitigate cost increases. Suggested measures include facilitating access to competitively priced materials and creating conditions that allow developers to continue projects without passing excessive costs onto buyers.