Climate Change Impacts Housing Demand, Prices, and Livability
Rising temperatures in several Mexican cities are significantly altering the housing landscape, making climate adaptation not just a comfort issue but an economic and structural necessity. Key factors now influencing real estate markets in the hottest regions include habitability, thermal resilience, and maintenance costs.
The National Meteorological Service confirmed that 2024 was Mexico’s hottest year on record, with an average national temperature of 22.9 °C, 1.5 °C above the historical average. Climate change projections by UNAM’s Climate Change Research Program anticipate temperature increases of up to 5.3 °C by the end of the century, necessitating sustainable housing solutions.
Dinero.mx Identifies 10 Hottest Cities and Their Housing Markets
In this context, Dinero.mx identified the 10 hottest cities in Mexico and analyzed how climate has affected their housing markets. The study revealed that not only have housing costs increased for buying or renting, but so has the expense on adaptations to maintain homes habitable.
“The greatest economic burden comes from high energy consumption for cooling. High temperatures accelerate the deterioration of building materials, forcing investments in thermal insulation, solar panels, or natural ventilation. Although these solutions reduce long-term costs, they require significant initial investments,” explained Alejandro Sena, Dinero.mx’s General Director.
Mexicali, Baja California
With an annual average of 24.5 °C and summers exceeding 40 °C, it maintains an active housing market due to its border location. Homes cost around 2.8 million pesos on average, with monthly rents averaging 22,000 pesos.
San Luis Río Colorado, Sonora
Located in the Sonoran Desert, it reaches historical temperatures of 52 °C. Its housing market is the most affordable on the list, with homes costing around 1.3 million pesos and monthly rents near 8,000 pesos.
Ciudad Juárez, Chihuahua
Despite cold winters, its summers reach 50.5 °C. Homes cost an average of 3.55 million pesos, with rents reaching 20,250 pesos.
Hermosillo, Sonora
With 24.3 °C as the annual average temperature, it recorded 49.5 °C in 2024. Its housing market is dynamic, with homes reaching up to 4.29 million pesos and monthly rents of 18,500 pesos.
Culiacán, Sinaloa
Humid heat and maximum temperatures of up to 49 °C have driven the need for adaptation. The average home price is 3.6 million pesos, with monthly rents at 16,500 pesos.
Ciudad Victoria, Tamaulipas
With temperatures exceeding 37 °C and high humidity, it offers homes for 1.9 million pesos and rents at 10,000 pesos.
Campeche, Campeche
The tropical climate and a record of 45.1 °C in 2024 have raised prices. Homes sell for an average of 4.3 million pesos, with monthly rents averaging 20,000 pesos.
Villahermosa, Tabasco
Suffocating heat and humidity influence an expensive housing market. Homes cost around 4 million pesos, with monthly rents averaging 28,000 pesos.
Mérida, Yucatán
Its tourism appeal maintains high demand despite temperatures of up to 44.2 °C. It has the highest prices on the list, with homes costing up to 5 million pesos and rents near 25,000 pesos.
Key Questions and Answers
- What is the impact of rising temperatures on Mexican housing markets? Rising temperatures have increased housing costs for both buying and renting, as well as expenses on adaptations to maintain homes habitable.
- Which cities are most affected by extreme heat in terms of housing? Mexicali, San Luis Río Colorado, Ciudad Juárez, Hermosillo, Culiacán, Ciudad Victoria, Campeche, Villahermosa, and Mérida are among the hottest cities in Mexico where extreme heat significantly impacts housing markets.
- What are the key factors influencing real estate markets in hot regions? Habitability, thermal resilience, and maintenance costs are crucial factors affecting real estate markets in Mexico’s hottest regions.
- How do high temperatures affect home maintenance costs? High temperatures accelerate the deterioration of building materials, leading to increased investments in thermal insulation, solar panels, or natural ventilation.
