Overview of Mexico’s Housing Market
According to records from the Sociedad Hipotecaria Federal (SHF), Mexico City, Baja California Sur, and Querétaro have the highest average housing prices among Mexican states. During the first quarter of 2024, the national average price for housing was 1,859,043 pesos. Thirteen states reported prices above the national average, while nineteen others showed lower values.
Top Seven States with Highest Prices
- Mexico City: 3,866,210 pesos
- Baja California Sur: 2,644,915 pesos
- Querétaro: 2,357,145 pesos
- Yucatán: 2,319,233 pesos
- Baja California: 2,272,653 pesos
- Nayarit: 2,203,298 pesos
- Morelos: 2,118,711 pesos
Bottom Five States with Lowest Prices
- Durango: 1,065,371 pesos
- Tamaulipas: 1,068,190 pesos
- Tlaxcala: 1,181,536 pesos
- Zacatecas: 1,186,806 pesos
- Veracruz: 1,323,751 pesos
Tlaxcala Shows Significant Price Increase
Among the 32 federal entities, Tlaxcala experienced the most substantial increase in housing prices, with a 14.7% annual variation from January to March based on the SHF Housing Price Index.
Quintana Roo followed with a 12.2% increase, while Baja California Sur and Nayarit both reported 10.9% growth.
In contrast, the modest increases were observed in Mexico City (4.9%), Sinaloa (5%), the State of Mexico (5.6%), Guerrero (5.8%), and Coahuila (5.9%).
Nationally, the SHF index increased by 8.2% annually; 21 states had higher increases, and 11 states experienced lower growth.
This recent increase in housing values occurs amidst a macroeconomic environment where the GDP grew by 0.8% annually in the first quarter of 2024, as reported by the Instituto Nacional de Estadística y Geografía (INEGI). The average mortgage rate during the first quarter was 11.65%, according to Banco de México.
Key Questions and Answers
- What are the top seven states with the highest housing prices? Mexico City, Baja California Sur, and Querétaro lead the list, with prices above 2 million pesos. The other four states are Yucatán, Baja California, Nayarit, and Morelos.
- What are the bottom five states with the lowest housing prices? Durango, Tamaulipas, Tlaxcala, Zacatecas, and Veracruz have the lowest prices, with Tlaxcala showing a significant increase.
- How does Tlaxcala compare to other states in terms of housing price growth? Tlaxcala experienced the most substantial increase with 14.7%, while Mexico City, Sinaloa, the State of Mexico, Guerrero, and Coahuila had more modest growth.
- What is the national housing price index trend? The SHF index increased by 8.2% annually, with 21 states showing higher growth and 11 states experiencing lower increases.
