Economic viability of building affordable housing in Campo Grande, Mato Grosso do Sul

Leandro Faria Gomes and Melina Teixeira Andrade

Revista IPecege, 2016, vol. 2, issue 2

Abstract: The housing deficit is an index that measures the need for replacement or construction of new housing in a given location. In Brazil, until 2008, there was a huge housing shortage. To reduce this number, the Federal Government launched the "Minha Casa, Minha Vida" (My House, My Life) Program in 2009, which aimed to produce new homes for low-income families. The program's second phase began in 2011 and aimed to build an additional 2.75 million homes by the end of 2014, with a budget of R$ 125.7 billion. Through the calculation of Net Present Value (NPV) and Internal Rate of Return (IRR), the economic viability of constructing two low-cost houses for sale through the National Urban Housing Program was analyzed in scenarios of varying production costs, price, and sales time. Positive results were obtained in all scenarios, and it was concluded that this investment should be made.

Keywords: Consumer/Household; Economics (search for similar items in EconPapers)
Date: 2016
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