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Inflation, input costs and speculation affect housing prices: CMIC JALISCO

Jalisco News Report:

Juan Chávez Ochoa , president of the  Mexican Chamber of the Construction Industry , Jalisco delegation, explained that the increase in the  price of housing  in the  Guadalajara Metropolitan Area (ZMG) is derived from inflation, the cost of inputs and speculation.

“What happened in the Metropolitan Area, the problem of this exponential increase in housing or in the cost of housing is derived from the value of the land.”

Juan Ochoa, president of the CMICJ.

According to Ochoa, there are few land reserves, and the owners speculate with the value of the land, which generates this increase. In addition, he mentioned that one of the  main inputs  for construction, such as  steel,  was in short supply during the pandemic, therefore it is one of the factors for the increase in the price of housing.

“Steel, we all witnessed what happened to steel during the pandemic. The markets have become standardized, there are already inventories and that has not led to prices becoming standardized.”

Juan Ochoa, president of the CMICJ.

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