Construction wage increase could affect housing prices, Abinader says productivity must rise

President Luis Abinader rejected the idea that development should depend on cheap labor as the Dominican Republic weighs the effect of higher construction wages on housing prices.

“​​No society develops with cheap labor. What we have to do is work on greater productivity,” Abinader said during LA Agenda Semanal at the National Palace.

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No society develops with cheap labor. What we have to do is work on greater productivity.

The issue arose after journalist Roberto Cavada asked Housing and Buildings Minister Jean Luis Rodríguez about a warning from the Dominican Association of Builders and Housing Developers, known as Acoprovi. The group said the sector’s wage increase could push housing costs up by about 6%.

Abinader said the answer should be greater productivity, not low wages. He pointed to Acoprovi’s experience with construction technology and said the government would support those efforts. “We are going to help them with that. And what we have to work on is greater staff productivity,” he said.

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We are going to help them with that. And what we have to work on is greater staff productivity.

The housing minister said wages are not the only factor behind home prices. Land and construction materials also contribute to costs, he said. For lower-cost housing programs, the government provides bonuses and other assistance intended to make projects viable for developers and help families buy their first homes.

Cavada also raised complaints from program users about bureaucracy and concerns that some units labeled as low-cost no longer appear inexpensive compared with the broader market. Rodríguez said the government’s support measures are designed to keep access possible as project costs change.

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It is something that is handled together.