Construction Sector Posts $2.45 Billion and 8% Growth in 2025 — Government's Miti-Miti Mortgage Program Set to Double Lending Volume in 2026

Sector Recovery After 27-Month Downturn

Ecuador's construction sector generated $2.45 billion in total output during 2025, marking an 8% year-over-year increase and ending a 27-month contraction that had shrunk the sector by nearly 15% from its 2022 peak. The recovery represents a critical inflection point for one of Ecuador's largest employers and a key driver of domestic economic activity.

Construction Metric	2023	2024	2025	2026 Projection
Sector output	$2.50 billion	$2.27 billion	$2.45 billion	$2.70-2.85 billion
Year-over-year growth	-4.2%	-9.2%	+8.0%	+10-16%
Share of GDP	6.8%	6.1%	6.3%	6.6%
Employment (direct)	520,000	465,000	490,000	530,000+
Cement consumption (MT)	5.8 million	5.2 million	5.6 million	6.0 million

The Miti-Miti Engine

The "Tu Casa Miti-Miti" (Your House 50/50) program is the government's flagship housing initiative, offering subsidized mortgage terms that significantly undercut market rates:

Program Feature	Miti-Miti Terms	Market Average
Interest rate	4.87-4.99%	9.0-11.5%
Down payment	5%	20-30%
Maximum term	25 years	15-20 years
Maximum property value	$105,000 (standard) / $150,000 (expanded)	No limit
Government subsidy	Up to $6,000 direct + rate buydown	None
Monthly payment ($80K home)	~$420	~$780

The program is structured as a public-private partnership: the government provides a direct subsidy and an interest rate buydown, while private banks and cooperatives originate and service the loans using their own capital.

Lending Volume and Projections

Vice Minister of Housing Daniel Elmir stated that mortgage lending under Miti-Miti will double in 2026:

Miti-Miti Metric	2025	2026 Projection
Loans originated	12,400	24,000-26,000
Total lending volume	$890 million	$1.7-1.8 billion
Average loan size	$71,800	$70,000
Participating banks	8	12
Participating cooperatives	15	25
Geographic coverage	Quito, Guayaquil, Cuenca	+ Ambato, Loja, Machala, Manta, Santo Domingo

Regional Construction Activity

City/Region	2025 Building Permits	Year-over-Year Change	Dominant Segment
Quito	3,200	+12%	Mid-rise residential
Guayaquil	2,800	+15%	Housing developments
Cuenca	1,100	+6%	Residential + commercial
Ambato	450	+18%	Affordable housing
Machala	380	+22%	Residential
Manta	320	+25%	Commercial + tourism
Other cities	2,750	+5%	Mixed
Total	11,000	+12%

Material Costs and Supply Chain

Construction material prices have stabilized after significant volatility in 2023-2024:

Material	Current Price	Year-over-Year Change	Outlook
Portland cement	$8.20/bag (50kg)	+2.1%	Stable
Structural steel	$920/tonne	-3.5%	Declining
Concrete block	$0.45/unit	+1.8%	Stable
Lumber (pine)	$280/m³	+4.2%	Rising
PVC pipe	$3.80/m (4")	-1.2%	Stable
Copper wiring	$12.50/m	+8.5%	Rising (global copper prices)

Broader Economic Impact

Construction's multiplier effect on the economy is significant:

• Every $1 in construction generates an estimated $2.50 in total economic activity across the supply chain
• 490,000 direct jobs in 2025 support an estimated 1.2 million indirect jobs in building materials, transportation, equipment, and services
• The sector consumed 75% of domestic cement production and 60% of domestic steel production in 2025

What to Watch

Track Miti-Miti loan origination data quarterly — Vice Minister Elmir's doubling projection requires consistent monthly disbursement acceleration. Monitor building permit issuance in secondary cities — the program's expansion to Ambato, Loja, Machala, Manta, and Santo Domingo in 2026 will test whether demand exists beyond the major metros. Watch BanEcuador and BIESS lending rates — if public banks match Miti-Miti terms, the total mortgage market expansion could exceed projections. Track cement and steel import volumes — rising imports signal construction activity more reliably than survey data. Monitor SRI January 2026 sales data — real estate was among the top-growing sectors in January.

Sources: El Universo, SRI, Vice Ministry of Housing