[DR1] Housing costs more in the DR

[NewsWhore]

The relative cost of a house in the Dominican Republic is higher than in most other nations in the area, according to figures from the Economic Commission for Latin America (CEPAL) cited by CenAntillas, the Santo Domingo-based economic think-tank. On average, the cost of a house in Latin America is twice the median annual income, but in the Dominican Republic the cost is three times the average adjusted income, about US$11,400, which means that buying a house in the DR 33% more expensive than in the rest of Latin America. According to the report in Listin Diario, housing loans fell by more than 30% in 2004, going from RD$5.36 billion in 2003 to just RD$3.70 billion in 2004. In 2005 there was a 9.6% rebound to RD$4.0 billion in housing loans. However the absolute number of units has fallen continuously since reaching a high of 10.845 in 2002. In 2003 the number fell slightly to 10, 518, and then in 2004 only 5,128 and in 2005 just 4,795. CenAntillas says that because factory and office workers do not earn enough money, they are considered by most Savings and Loan Associations to be "risky" investments. However, according to the think-tank, the huge fall in housing units financed by the S&Ls suggests that "there is a need to strengthen housing financing in the DR."

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