The profound decline in housing construction in Cuba is an unmistakable sign of the economic and social collapse the country is experiencing: in 2024, fewer homes were built than in the worst years of the Special Period, highlighting the ongoing failure of the State to address one of the most basic needs of the population.
The information was revealed by Cuban economist Pedro Monreal in an analysis published on the social network X, based on the official report titled “Construction in Cuba. Selected Indicators. January-December 2024. May 2025 Edition,” issued by the National Office of Statistics and Information (ONEI).
"In the worst year of the Special Period (1992), nearly three times as many housing units were built as in 2024," Monreal noted, warning that the current housing situation is not only critical but also structural.
To support his assertion, he compared the data with previous decades: in 1984, 5.5 times more housing units were built than in 2024, and in 2006, considered the peak year for residential construction, the figure was 15 times higher.
"These figures confirm that the housing crisis in Cuba is long-term and structural, not just a temporary decline," warned the economist.
The decline in construction activity occurs in a context of material shortages, inflation, job insecurity, and minimal public investment in infrastructure.
The growing demand for housing, combined with the deterioration of the existing housing stock, further exacerbates an already unsustainable situation for thousands of Cuban families.
In another thread on the social network X, Monreal referred to the government's investment priorities as "twisted" and "distorted," disproportionately focused on the tourism sector.
Only 1,682 million Cuban pesos were allocated to housing construction in 2024, an insignificant amount compared to the 11,936 million invested in the tourism sector, as highlighted by the economist. This implies that the regime spent approximately 7.1 times more on tourism than on residential building.
"Despite the official propaganda regarding 'correcting distortions,' a twisted priority of the Cuban government remains, embedding a chronic national investment distortion focused on tourism," the expert denounced.
The data directly contradicts what the Minister of Tourism stated in December 2024, when he claimed that in the second half of the year "no investments have been made in any new projects."
However, Monreal notes that the high relative weight of investment in tourism remained unjustified, despite the low hotel occupancy rate, which barely reached 23%.
Meanwhile, the agricultural sector, crucial for tackling the country's severe food crisis, received only 2.7% of the total investment, which represents a figure 14 times smaller than that allocated to tourism.
"The persistence of the low weight of agricultural investment seems to indicate that the official 'priority' regarding food security is nothing more than a misleading slogan," he stated.
Monreal also criticized that tourism investment continues to have a greater weight than the combined investment in the manufacturing industry and agriculture, two sectors vital for increasing productivity, generating well-being, and strengthening internal productive linkages.
With a very low overall investment rate, measured as a percentage of gross capital formation within GDP, and a "severely distorted" investment pattern, the economist concluded that the official statements about "correcting distortions and revitalizing the economy" are "insipid."
"The contradiction between a declining tourism sector that continues to voraciously consume the scarce investment resources and a food crisis that is neglected and disregarded as a priority for investment expresses, at the very least, a policy of stagnation," he asserted.
According to official figures, investments in business services, real estate, and rentals reached 24.907 billion Cuban pesos (CUP) in 2024, making it the primary destination for capital expenditure in the country.
Additionally, there are 11,936.5 million CUP allocated to hotels and restaurants, bringing the total to over 36,800 million pesos invested in activities closely related to tourism.
These figures intensify the debate regarding the continued priority that the Cuban regime places on tourism, despite the prolonged stagnation of the sector and the serious shortages faced by the population in essential areas such as public health and food production.
In this same vein, in 2024, official data on investment in Cuba during the first half of that year reignited the debate about the distribution of resources on the island, particularly the Cuban regime's insistence on investing in the tourism sector to the detriment of essential sectors such as health and social assistance.
According to the ONEI report, from January to June 2024, the regime allocated nearly 40% of its investments to activities related to tourism, while investment in Health and Social Assistance is 14 times lower, a fact that has been harshly criticized by economic experts, such as Cuban economist Pedro Monreal.
Frequently Asked Questions about the Housing and Economic Crisis in Cuba in 2024
What does the decline in housing construction in Cuba in 2024 reveal?
The construction of housing in Cuba in 2024 reached lower levels than those recorded during the Special Period. This indicates a sustained collapse of the state's ability to meet basic needs, such as housing, exacerbating the housing crisis in the country.
Why is the Cuban government's investment in the tourism sector criticized?
The criticism regarding investment in tourism focuses on the fact that the Cuban government has allocated 7.1 times more resources to this sector than to housing construction. This occurs despite low hotel occupancy rates and urgent needs in other sectors such as agriculture and infrastructure, reflecting a distortion in the regime's investment priorities.
How does the economic crisis affect the production of building materials in Cuba?
The economic crisis has reduced cement production in Cuba to only 10% of its installed capacity in 2024. This, along with the lack of investment and maintenance in cement plants, has severely impacted the housing program and other essential infrastructure.
What is stagflation and how is it affecting Cuba in 2024?
Stagflation is an economic phenomenon that combines high inflation with economic stagnation or decline. In 2024, Cuba faces an annual inflation rate of 28% and a contracting economy, making it more difficult for citizens to access basic goods and services and eroding their quality of life.
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