U.S., Mexico Sign Partnership to Spur Housing
NAHB and Mexico’s construction industry will work together to create more accessible trade channels and exchange technology and skills aimed at improving the quality, affordability and efficiency of the home building process, according to a landmark agreement signed on Jan. 11 in Orlando, Fla. during the International Builders’ Show.
“This agreement is the latest positive offshoot of the landmark Partnership for Prosperity alliance established by President Bush and Mexico President Vicente Fox in February of 2001,” said 2005 NAHB President David Wilson. “It creates another powerful bilateral link between Mexico and the United States. It will enhance cross-border ties and provide greater business and trade opportunities for the housing sector. The business generated as a result of this agreement will contribute to the economies of both our countries.”
Signatories of the agreement included Wilson and Netzahualcóytl Salvatierra López, president of the Cámara Mexicana de la Industria de la Construcción, Mexico’s Construction Industry Chamber.
Among the dignitaries in attendance were Martha Roblés Montijo, representative of CONAFOVI, Mexico’s Housing Commission, and Dr. Carlos Martin of the U.S. Department of Housing and Urban Development.
Mexico’s total market for the building, construction and housing industry for 2005 was estimated at $40 billion, with U.S. imports around $8 billion, representing 70% of total imports. Imports into Mexico are projected to total $12.25 billion in the first quarter of 2006, according to the U.S. Foreign Commercial Service in Mexico.
Both the U.S. and Mexico have substantial demand for affordable, workforce housing in high-growth areas. In addition, both governments have established ambitious housing goals that the newly signed agreement could help achieve.
During his administration, President Fox established housing as a national priority in Mexico and has ramped up production of new homes in all sectors. Meanwhile, President Bush established the goal of increasing U.S. minority homeownership by 5.5 million families during this decade, which would generate $256 billion for the domestic economy.
“Mexico is looking to build more than 1 million new homes annually for low- and moderate-income households over the next three years, with an anticipated growth rate of 4.5% per year in housing production,” Wilson noted. “Those impressive statistics, combined with Mexico’s growing appeal as a resort and retirement destination, make it an attractive market. On the flip side of the coin, our colleagues in Mexico will have a chance to tap into the booming U.S. housing marketplace and all it has to offer. Any way you look at it, it’s a win-win situation.”
NAHB’s “Access Mexico” project promotes a bilateral forum to enhance trade, exchange information and share technologies between the U.S. and Mexican housing industries. Find out more about the Access Mexico initiative at www.accessmexico.info.
For more information, e-mail Rita Feinberg at NAHB, or call her at 800-368-5242 x2419.