Honduran construction industry estimates only 3,000 social housing units for 2026

The construction industry in Honduras is projecting a significantly low output of social housing for the current year, with estimates suggesting only "barely" 3,000 units will be constructed. Silvio Larios, director of the Honduran Chamber of the Industry of Construction (Chico), attributed this shortfall primarily to the lack of disbursed funds from the Honduran Bank for Production and Housing (Banhprovi).

Larios stated that Chico has not received confirmation regarding the allocation of funds from Banhprovi or the presidency, despite awareness of preparatory work related to institutional identification and resource amounts. He expressed hope that resources from Banhprovi would become available by the end of August, which would enable a continuous push for housing construction, help reduce the housing deficit, and generate both direct and indirect employment.

In addition to domestic funding challenges, Chico is also exploring financial resources through the Andean Development Corporation (CAF). The proposal involves securing approximately $500 million annually to support the social housing program. Larios emphasized the necessity of meetings with the International Monetary Fund (IMF) mission to facilitate decisions by institutions that are expected to provide these resources.

The limited construction of social housing highlights a significant challenge in addressing Honduras's housing deficit and stimulating economic activity through the construction sector. The reliance on timely fund disbursement and the exploration of international financing underscore the financial constraints impacting the sector's ability to meet demand.

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We have not heard from them or the president that the funds have been allocated, although we know they have worked on the preparations for the identification of the institution and the amount of resources.