#1IHA INTERNATIONAL HOUSING ASSOCIATION STATE OF THE HOUSING INDUSTRY MEXICO 2017 cmic Cámara Mexicana de la Industria de la Construcción NAHB. National Association of Home Builders IHA Secretariat#22 STATE OF THE HOUSING INDUSTRY PRESENTATION MEXICO 2017 COUNTRY: Mexico NAME OF ORGANIZATION: Mexican Chamber of the Construction Industry, CMIC 1- ORGANIZATION OVERVIEW: CMIC has nationwide representation with 44 delegations across all states and representation offices in 62 cities. It represents over 11,000 companies, 99% being MSME (Micro, Small, Medium). Its mission is to represent, defend and encourage general interests of the construction industry, both in side and outside the country. CMIC works with the Public and Private Sectors. It represents the Housing Sector, as well as general infrastructure, with active participation in the Transportation, Energy, Urban Development, Water, Environment and Mining Sectors. The Training Institute of the Construction Industry (ICIC) is part of CMIC. It provides training and updates for all members of the industry at all levels. The Construction Technologic Institute (ITC) offers graduate and postgraduate studies specialized in construction. The Construction Industry Foundation (FIC) seeks to improve productivity through the development of new technologies in administration and construction.#3cmic STATE OF THE HOUSING INDUSTRY (México) 3 Tijuana cmic 44 Delegations Represent, defend and promote the general interests of the construction industry inside and outside the country Baja California Ciudad Juárez Total: 62 offices A Public Interest Institution cmic Sonora cmic cmic Chihuahua cmic Coahuila cmic MÉXICO SUSTENTABLE cmic INFRAESTRUCTURA DE CLASE MUNDIAL Autonomous Legal Entity Nvo. León Sinaloa Nte. cmic cmic Torreón cmic Mazatlán cmic Durango cmic Institutionally Owned Assets cmic Saltillo Tamaulipas cmic cmic Zacatecas Baja Cd. Victoria Sinaloa Sur California cmic San Luis cmic Sur cmic Potosí Ags Yucatán cmic Nayarit cmic cmic Poza Rica Jalisco cmic Guanajuato cmic emic Hidalgo Xalapa cmic Michoacán cmic cmic 11,000 member companies cmic cmic cmic mic Colima cmic Lázaro Cárdenas Guerrero cmic cmic Campeche Cd. del cmic Veracruz cmic Carmen mic Tabasco cmic cmic cmic Morelos Puebla cmic mic cmic Coatzacolacos Oaxaca cmic Chiapas mic#4STATE OF THE HOUSING INDUSTRY PRESENTATION TEMPLATE (MEXICO) 2017 4 2- HOUSING ECONOMIC STATISTICS: Starts: Percentages: Numbers: - Single Family' 41.32% 103,344 Multifamiliar Horizontal (14.39%) 35,993 Multifamily' Multifamiliar vertical (28.05%) 70,160 Duplex (15.93%) 39,845 Triplex (0.32%) 794 Gross domestic product (GDP), current prices (Billions) 2 2017 US$1,124* GDP Growth (Percent change) 2 2017 2.3%* US$9,102* Gross domestic product per capita (Units) 2 Gross domestic product based on purchasing-power- 2017 parity (PPP) per capita (Units)² US$19,519 1Source: Registro Único de Vivienda (RUV) 2 Source: International Monetary Found (IMF) *Estimated#55 STATE OF THE HOUSING INDUSTRY PRESENTATION TEMPLATE (MEXICO) 2017 Starts: Percentages: Numbers: Inflation, house price index (Percent 2.57% 4Q 2017 change)³ Inflation, end of period consumer 3.1% * prices (Percent change) 4 2017 Inflation, end of period consumer 6.77% prices (Percent change) 5 Unemployment rate (percent of total 3.9% * 2017 labor force) 4 Home Mortgage Interest Rate5 10.79% Ene 2018 Home Ownership Rate (67.7%) 2015 Population Growth/Net4 1.2/(123,518,423) 2017 3 Source: Sociedad Hipotecaria Federal (SHF) 4 Source: International Monetary Found (IMF) 5 Source: Banco de México (BANXICO) 6 Instituto Nacional de Estadística y Geografía (INEGI) *Estimated#6STATE OF THE HOUSING INDUSTRY PRESENTATION: BUILDING CODES 6 3.a. How are residential building codes developed in your country? First, it is important to clarify that in Mexico regarding legislation for building, what prevails is the Regulation of Construction, which may have State or only local scope, these are created or modified according to the needs of the locality, because in Mexico there is a great diversity of conditions that can affect construction. Second, in Mexico the codes are a compilation of laws and rules that serves as a reference for definition of what is applicable in the locality. When talking about residential construction, the National Housing Commission (CONAVI, for its acronyms in spanish) is the decentralized agency of the federal government, whose main mandate is to design and coordinate the National Housing Policy, in 2006 it developed the Housing Edification Code (CEV, for its acronyms in spanish), which aims to regulate in its essential aspects the process of housing construction, incorporating the norms for the development of a safe, reliable, livable and sustainable construction in an orderly and balanced urban context, establishing the obligations and responsibilities of the agents involved in said process.#7STATE OF THE HOUSING INDUSTRY PRESENTATION: BUILDING CODES 7 3.b. Is there an administrative or judicial process to amend residential building codes or to resolve complaints about existing building codes? In Mexico there is an administrative process, but this is done in the corresponding instance (state or municipal), it does not have a defined periodicity, because this process is realized according to the needs of the population or of the same authorities at the national, state or municipal level.#88 STATE OF THE HOUSING INDUSTRY PRESENTATION: BUILDING CODES 3.c. How are residential building codes enforced in your country? The adoption of the CEV is a legal-administrative process carried out by the local authority (state and / or municipal) according to the own needs and characteristics, through which the CEV becomes a law or regulation, is published in local ordinances and it becomes mandatory. It is important to mention that each building must have a construction permit, which must be in a visible place, in addition the local authorities perform random checks to corroborate that the whole process is being carried out in accordance with the CEV.#9STATE OF THE HOUSING INDUSTRY PRESENTATION: BUILDING CODES 6 3.d. What is the role of your organization pertaining to building codes? Our chamber by law, can participate as a consultation body with government authorities. Given that our specialty is construction, we participate actively and propositively at the local, state and municipal level in the revision and definition of the codes that are handled in it the country.#1010 RUVO Registro Único de Vivienda INEGI cmic References (México) B BANCO DE MEXICO cmic Vicepresidencia Ejecutiva de Vivienda y Desarrollo Urbano INSTITUTO NACIONAL DE ESTADISTICA Y GEOGRAFIA SEDATU SECRETARÍA DE DESARROLLO AGRARIO, TERRITORIAL Y URBANO CEESCO Centro de Estudios Económicos del Sector de la Construcción RNATION International Monetary Fund SIF SOCIEDAD HIPOTECARIA FEDERAL SISTEMA NACIONAL DE INFORMACIÓN E INDICADORES DE VIVIENDA SNIIV 2.02 Click on the image for more information#11IHA INTERNATIONAL HOUSING ASSOCIATION THANK YOU. NAHB National Association of Home Builders 00 IHA Secretariat