Housing prices in Brazil have reached an eight-year high, dashing home-ownership hopes for millions of Brazilians.
Rising inflation and the resultant increase in the cost of construction materials are driving home prices upward in most cities across the country, according to a survey by the Fundação Instituto de Pesquisas Economicas (FIPE).
In some cities, home prices have increased by an average of 26% compared to the national average of 6.16% in 2022.
The average cost of a square meter of built housing is now US$1,619, with similar rates in most major towns. The price of a home rose by an average of 23.23% in Vitoria, the capital of the southeastern state of Espirito Santo.
Currently, Brazil’s expanded consumer prices index, the official measure of inflation, marked a 5.89% increase, the highest since 2014, when home prices climbed 6.70%.
The research firm studied housing prices in 50 Brazilian cities, including 16 state capitals, like São Paulo.
The main reason for the increase in home prices has been the rise in construction costs. The national construction cost index (INCC) rose 13% in 2021 and 9.28% in 2022.
A square meter of a house costs at least US$2,041 in the city of Espirito Santo. Houses in affluent neighborhoods are much more expensive, Homebuyers in these areas pay as much as US$2,229 per square meter.
Among the municipalities in this study, Canoas (RS), where the price per square meter is US$951, is the only one that saw a decrease in real estate prices.