New housing construction costs increased by 2.9% in June, year-on-year, with the cost of materials falling 0.6% and labor rising 7.9%, INE announced today.
According to the New Housing Construction Cost Index, published by the National Statistics Institute (INE), “in June 2023, it is estimated that new housing construction costs increased by 2.9% year-on-year, 0.1 percentage points more than in the previous month”.
Material prices showed a change of -0.6% (-0.7% in the previous month), while labor costs increased by 7.9%, 0.1 percentage points more than in May.
The cost of labor contributed with 3.2 percentage points to the formation of the rate of change of the index, as in the previous month, and the materials component with -0.3 percentage points (-0.4 p.p. in the previous month).
According to INE, among the materials that most negatively influenced the aggregate price change are steel for concrete and heavy and light profiled shapes and mild and galvanized steel sheet, which showed decreases of around 30% year-on-year.
In the opposite direction, cement stood out, with a year-on-year growth of more than 20%, and wood and wood products and ready-mixed concrete, with variations of more than 15%.
Compared with May, the rate of change in the index was 0.1% in June, the same as in the previous month, with the cost of materials falling by 0.4%, while that of labor rose by 0.8%.
The materials and labor components contributed -0.3 and 0.4 percentage points, respectively, to the formation of the monthly rate of change of the index (-0.1 and 0.2 percentage points in May, in the same order).
