Housing construction costs increased 3.74% in DR

The Dominican Republic recorded a year-on-year increase of 3.74% in direct costs for housing construction at the end of 2025, driven by the rise in materials, labor, and services associated with the sector, according to the most recent report of the Housing Construction Direct Cost Index (ICDV), published by the National Statistics Office (ONE). According to the official report, the ICDV was located at an average of 236.17 points in December 2025, which represents an increase of 8.49 points compared to the same month of the previous year. This indicator, which functions as a monthly thermometer of the construction market’s behavior in the country, reflects the evolution of the prices of materials, tools, equipment, subcontracts, and other essential inputs for the construction of single-family and multi-family homes up to eight levels.

Evolution of costs by type of housing

The largest cost increase was observed in single-story single-family homes, where inputs increased by 4.36%, rising from 232.10 points in December 2024 to 242.41 points in December 2025. Two-story single-family homes also registered a significant increase of 3.57%, rising from 229.97 to 238.18 points in the same period.

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Regarding apartment buildings, those with four levels showed a year-on-year increase of 3.49%, rising from 224.40 to 232.30 points, while those with eight levels or more increased by 3.45%, from 224.26 to 231.99 points, according to data released by the ONE.

Factors contributing to the increase

The ONE explained that the ICDV not only measures the prices of raw materials, but also incorporates the costs of tools, equipment, subcontracts, and complementary elements required in construction projects. These variations directly impact both real estate developers and final buyers, affecting housing affordability. The recorded increases respond to a trend that the construction sector has been experiencing for several years, influenced by the volatility in the prices of key inputs such as cement, steel, and PVC, as well as by periodic adjustments in labor costs and specialized services. This is compounded by the international context, marked by inflationary pressures and disruptions in supply chains, which continue to impact the construction market on the island.

Monthly variation: slight decreases in December

Although the index showed year-on-year growth, the monthly variation indicated a slight decrease of 0.43 points between November and December 2025, going from 235.73 to 236.17 points. This decrease responded to specific drops in some components of the index. During December, the tools and materials groups registered negative monthly variations of -0.21% and -1.48%, respectively, in contrast to the increases of 0.84% and 0.40% observed in December 2024. Among the subgroups with the largest reductions, electrical miscellaneous (-24.10%), paints (-7.49%), blocks and others (-4.29%), as well as wires, nails and zinc (-1.67%) stood out. Subcontracts for the completion of housing also showed a decrease of -1.43%. However, increases were recorded in key inputs such as cement and glue (5.12%), electrical accessories (1.95%), steel (1.92%), PVC pipes and fittings (1.40%) and equipment for sanitary installations (0.64%), evidencing a dynamic and complex price structure within the sector. The ICDV remains as a mandatory reference tool for public and private agents in the Dominican real estate market, by allowing to accurately monitor the evolution of costs in housing construction. With information from INFOBAE