Public investment drives construction growth while housing barely advances

By THE STAR STAFF

Construction activity increased by 9.55% during fiscal year (FY) 2026, driven primarily by public investment and recovery programs, while private housing and residential developments grew by only 1.0% and commercial and industrial buildings recorded a 0.4% contraction, the Puerto Rico Planning Board reported on Thursday.

“The data show that construction continues to grow and that public investment plays a decisive role in that progress,” Planning Board President Héctor Morales Martínez said in a written statement. “Reconstruction represents an opportunity to improve our infrastructure and, at the same time, boost economic activity.”

According to preliminary figures, the growth surpassed the 5.92% recorded during FY 2025. The largest increase was seen in recovery programs, at 21.9%.

Activity in public sector facilities -- including water and sewer projects, electric power infrastructure, and other public works -- increased by 11.7%. The component comprising the central government, municipalities and recovery programs recorded growth of 11.5%

Regarding private investment, projects involving facilities and other works linked to the pharmaceutical, telecommunications, and renewable energy sectors increased by 17.5%.

Residential construction showed a different trend, as previously mentioned. Thus, the overall increase in construction was accompanied by marked differences between infrastructure projects and the residential and commercial sectors.

The “Value of Construction Activity” report, prepared by the Construction Unit of the Planning Board’s Economic and Social Planning Program, presents preliminary results for FY 2026.

To compile the statistics, the agency uses surveys on the value of construction work performed during the period. The information is also used to calculate fixed asset investment, a component of Puerto Rico’s gross product.