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The housing sector welcomed the idea of expanding the income range of the Minha Casa, Minha Vida housing program to up to R$ 12 thousand. According to José Carlos Martins, president of the Brazilian Chamber of the Construction Industry (CbicBIC), this initiative is necessary in the current context of rising inflation in the sector.
Data from the National System for Research on Costs and Construction Industry Indices (Sinapi), linked to the Brazilian Institute of Geography and Statistics (IBGE), show that, in May, the sector recorded an increase of 6.13% over the last 12 months.
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The proposal to expand the income range of the Minha Casa, Minha Vida program aims to meet the growing demand for adequate housing in the country. With inflation rising and real estate prices increasing, it is necessary to find solutions that allow more people to access housing.
“The central problem is inflation in construction, which has grown excessively in recent years, causing construction companies to scale back their operations. From the last three months of last year to the first months of 2023, launches of new projects fell by 44%, indicating that companies are concerned they may not be able to secure financing when the development is delivered”, Martins explained.
Proposal could benefit the middle class
Riviera Construtora, a company with developments in Baixada Fluminense, supports the implementation of a specific line of credit, with lower interest rates, aimed at the middle-class population.
According to Vitor Sales, the company's Sales Supervisor, while a customer benefiting from the program's current conditions pays interest of 5% to 7% per year, middle-class customers pay up to 12%.
Sales argues that lowering interest rates could expand access to credit and reduce the amount of the down payment, which are the main obstacles faced by this group. The goal of this initiative is not only to benefit potential buyers, but also to stimulate the real estate sector.
By facilitating access to credit, demand for properties can be stimulated, boosting the economy, creating jobs, and strengthening the construction industry’s production chain. The proposal to expand the income bracket of Minha Casa, Minha Vida to the middle class is under consideration, and its feasibility and economic impact need to be assessed.
However, it is expected that this initiative may help more people achieve the dream of owning their own home, promoting the country’s social and economic development.
About the Minha Casa Minha Vida program
The Minha Casa, Minha Vida housing program, an initiative of the Brazilian government, aims to facilitate access to decent housing for Brazilian families, especially those with low incomes. Since 2009, the program has been an important tool for reducing the country’s housing deficit and promoting social inclusion.
One of the most notable features of Minha Casa, Minha Vida is the collaboration between the government, real estate companies, and financial institutions, such as Caixa Econômica Federal. Through this partnership, housing projects are developed throughout the country, with the aim of meeting the housing needs of Brazilian families.
Minha Casa, Minha Vida is structured into different income brackets, which establish the financing conditions and subsidies available to beneficiaries. For the lower income brackets, the government subsidizes part of the property’s value. On the other hand, for the higher income brackets, advantageous financing conditions are offered, with reduced interest rates.
