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How much does it cost to build an affordable house today? - La Nacion Propiedades
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Cuánto cuesta construir una casa económica hoy
Frente al aumento del costo de construcción, especialistas revelan cuánto cuesta construir hoy una casa económica
www.lanacion.com.ar
April 10, 2025
Faced with rising construction costs, specialists reveal how much it costs to build an affordable home today.
How much does it cost to build an affordable house today? Shutterstock
In a context where the square meter of properties continues to rise and the cost of construction has accumulated a 108% increase since October 2023 , according to Zonaprop figures, many are wondering how much it costs to build an "affordable house."
According to specialists consulted by LA NACION, the cost of building a well-built house today starts at US$1,500 per square meter , considering the lowest market prices, but can rise to US$3,000 if more expensive materials are used. However, they explain that if less-than-high-quality materials are chosen, the cost per square meter of construction can be reduced to approximately US$1,000.
Construction costs today start at US$1,500 per square meter.shutterstock - Shutterstock
Furthermore, they clarify that, when calculating the cost of building an affordable home, it's important to consider whether you can build a large home or opt for a small one. In any case, they explain that, in general, if someone builds an affordable home, it's because they want to save money, so they tend to build it with the smallest possible square footage, or at least the minimum necessary. Therefore, they're probably looking to build a property between 70 and 80 square meters. These dimensions would allow for two small bedrooms, a living room, kitchen, and dining room, and a bathroom.
If you choose to build a budget, low-quality home, you could get a 70 m² house for US$70,000 . If you prefer a slightly larger 80 m² house, but also of low quality, the price rises to US$80,000.
Now, if you're looking to build a well-built but inexpensive house, multiply US$1,500 by 70 m², and you're looking at an approximate cost of US$105,000. If the size increases to 80 m², the figure would rise to US$120,000.
How much does it cost to build a house in a gated community?
The cost of building a home in a gated community or private neighborhood has increased significantly in recent years . According to data from Reporte Inmobiliario, at the end of January 2025 , the construction cost exceeded $3,670,706/m² (US$2,984/m²), including taxes and professional fees, and based on the blue dollar exchange rate for that month.This means that for a 315 m² home, a total investment of $1,156 million ($1,156,272,392) would be required, which is equivalent to US$940,058 (almost one million dollars).
The cost of building a home in a gated community or private neighborhood has experienced a significant increase in recent years.
Compared to December 2024, when the total construction cost was $1,117,432,241 (equivalent to US$919,697 in the blue dollar at that month's exchange rate), the increase in pesos was approximately $38,840,151, representing a 3.48% variation in just one month.
In this case, the house model surveyed reflects the typology of a very high-quality single-family home located within a gated community in the Buenos Aires metropolitan area. Built on a corner lot in a central block, with a lot area of 800 m² and 315 m² of homogenized covered area (50% semi-covered), it is built on two levels, with a setback from the property's dividing axes, creating gardens and parking space.
Construction costs have increased by 108% since October 2023, according to Zonaprop figures.Michael Dwyer - AP
Why is the cost of construction increasing?
One of the main causes behind this phenomenon is the stability of the dollar or the fall in the value of the American currency in recent months , which means that increasingly more dollars are needed to build the same thing. For more than two years, costs measured in US currency kept pace with fluctuating inflation in pesos and constant devaluations. However, with the more moderate inflation in recent months and a dollar that has remained practically unchanged recently, construction costs have reached unexpected levels.This scenario is causing concern among builders, property owners in the construction phase, and subdivision developers due to the decline in demand. Uncertainty about inflation in pesos and the dollar exchange rate complicates project planning and execution.
"It can be seen graphically that prices at the end of January were already 60% above the peak seen in 2018, a factor that is worrying the sector," explains Reporte Inmobiliario.
After the turbulent start to the financial week due to the fall in global markets and President Donald Trump's announcement of a 10% base tax on imports from all countries and higher tariff rates for dozens of nations that have trade surpluses with the United States, it remains to be seen whether this will have any impact on construction costs.
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