Puerto Rico’s construction activity grew a preliminary 9.55% in fiscal year 2026, driven mainly by federally funded recovery projects, according to a Puerto Rico Planning Board survey. Recovery projects rose 21.9% compared with fiscal year 2025, when they rose 19.1%, while private facilities and public-sector projects rose 17.5%. The results are not adjusted for inflation.
The total value of construction activity reached $8.7768 billion in fiscal year 2026, up from $8.0117 billion the previous year. Alejandro Díaz Marrero, director of the Planning Board’s Economic and Social Planning Program, said the survey counts only projects that are underway with documented evidence of work, not money merely available. Private housing and residential developments grew 1%, while private commercial and industrial building slipped 0.4%, tied to a 3.8% drop in other commercial buildings.
Hotel and hotel villa construction grew 1.5%, as did industrial buildings. Planning Board president Héctor Morales Martínez said public investment plays a decisive role and that reconstruction can improve infrastructure while boosting the economy. Pinsy Rivera Ortiz, president of the Puerto Rico Builders Association, cautioned that higher monetary value does not necessarily mean more homes or projects, since material, equipment and labor costs have risen.
Economist Heriberto Martínez said the recovery is constrained by high inflation and dependence on federal funds, and that growth relies more on rebuilding existing infrastructure than on private investment. He cited the lack of an organized reconstruction process nine years after Hurricane Maria and the low priority given to energy infrastructure.