Excessive Regulation and Slow Government Processes Delay Housing Construction
The housing industry in Mexico is facing an administrative bottleneck, as more than 185 housing projects across the country are stalled due to pending authorizations from various governmental bodies, according to the National Chamber of Development and Promotion of Housing (CANADEVI).
Impact on Housing Deficit
The delay in permits, ranging from construction licenses to environmental or land-use approvals, has affected the delivery of new units in a context where the housing deficit exceeds 8 million homes. This situation is exacerbated by excessive regulation at the federal, state, and municipal levels.
Industry Perspective
Carlos Ramírez Capó, president of CANADEVI, stated in a press conference that developers are not seeking to eliminate regulatory requirements but rather streamline processes that can take years and jeopardize project viability.
Collaboration with the Secretariat of Economy
Among the institutions causing significant delays is the National Water Commission (CONAGUA). Ramírez Capó noted that CONAGUA has a historical backlog exacerbated by the hacking incident during the previous administration.
To address this issue, CANADEVI has initiated working groups with the Secretariat of Economy to integrate housing projects into their strategic investment portfolio, facilitating permit issuance. This collaboration aims to expedite federal processes with the Secretariat of Environment and Natural Resources (SEMARNAT), CONAGUA, the Federal Electricity Commission (CFE), and the National Agrarian Registry (RAM).
Housing Construction Projections
Ramírez Capó celebrated President Claudia Sheinbaum’s “Housing for Well-being” program, which has positioned housing as a key pillar of her administration. He estimates that up to 3.3 million homes could be built by the end of the current six-year term, including both public and private projects.
CANADEVI members are projected to generate 1.5 million homes during the six-year term, or 250,000 homes per year across all segments (from 650,000 to 5 million pesos). Additionally, the “Housing for Well-being” program aims to build 1.8 million homes.
However, Ramírez Capó warned that the program has not taken off in at least 10 federal entities due to issues like limited affordable land availability, infrastructure scarcity, and urban density restrictions.
Affected states include Mexico City, the State of Mexico, Nuevo León, Jalisco, and Querétaro, where high land prices, service saturation, and urban permit processes have complicated project execution.
To tackle these challenges, CANADEVI’s leader advocates for a second phase of the federal housing program focused on removing local barriers. The organization will host the National Housing Meeting 2025 on November 26-27 to facilitate dialogue between business leaders, academics, and authorities.
Key Questions and Answers
- What is the main issue facing Mexico’s housing industry? Excessive regulation and slow government processes are causing delays in more than 185 housing projects across the country.
- How does this situation impact Mexico’s housing deficit? The delay in permits affects the delivery of new units in a context where the housing deficit exceeds 8 million homes.
- What is CANADEVI’s stance on regulations? CANADEVI seeks to streamline processes rather than eliminate regulatory requirements.
- Which institutions are causing significant delays? The National Water Commission (CONAGUA) is one of the institutions causing delays due to a historical backlog.
- What are the housing construction projections for the current six-year term? Up to 3.3 million homes are projected to be built, including both public and private projects.
- Why have some federal entities struggled to implement the “Housing for Well-being” program? Limited affordable land availability, infrastructure scarcity, and urban density restrictions have hindered progress in these states.
