Housing Goals at Risk: 600,000 Pesos Homes Face Construction Hurdles

Web Editor

October 7, 2025

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Introduction

The ambitious goal of constructing 1.2 million homes, financed through Infonavit (led by Octavio Romero Oropeza) and 500,000 through Conavi (directed by Rodrigo Chávez Contreras), is facing significant challenges. The primary issues include water and electricity shortages, lack of construction permits, and insufficient infrastructure maintenance.

Key Challenges

  • Political Will and Corruption: A lack of political commitment, corruption, and an informal economy are hindering the housing sector’s progress.
  • Construction Permit Delays: Most municipalities are exercising their constitutional right to withhold construction permits if there’s no economic benefit. Some municipalities also lack interest in constructing affordable housing within their jurisdiction.
  • Water and Electricity Shortages: Insufficient water and electricity supply further complicates the construction of affordable homes. Conagua, under Efraín Morales, has been slow in granting water usage permits.
  • Regional Disparities: The problem is more acute in states like Veracruz, Jalisco, and Guanajuato.

Impact on Affordable Housing

These challenges have made it nearly impossible to build homes priced at 600,000 pesos or less in many regions. The situation is exacerbated by high land, service, and permit costs in places like Baja California, Mexico City, Guadalajara, and Monterrey.

Land Availability and Preparation

Despite available land for affordable housing construction, most require preparation—including the right zoning, necessary permits, and services. This process takes approximately four years to build 250,000 homes annually.

Financing and Informal Economy

Planning should also consider financing options for both formal and informal workers, as the latter constitute 54% of potential homebuyers. With three years dedicated to planning and two for construction and sales, the industry can avoid building unoccupied homes.

Key Questions and Answers

  • Q: What are the main challenges facing affordable housing construction? A: Key issues include water and electricity shortages, construction permit delays, and insufficient infrastructure maintenance.
  • Q: How does the informal economy affect affordable housing? A: The informal economy accounts for 54% of potential homebuyers, necessitating financing options for this sector.
  • Q: How long does it take to prepare land for affordable housing construction? A: The process typically takes around four years to build 250,000 homes annually.
  • Q: What are the regional disparities in affordable housing construction? A: The problem is more pronounced in states like Veracruz, Jalisco, and Guanajuato.