Formal Housing Construction Shows Signs of Recovery in Mexico
Formal housing construction in Mexico showed signs of recovery during 2025, according to data from the Registro Único de Vivienda (RUV). The sector registered an annual growth of 8.2%, with a total of 138,645 houses built, a figure that stands out amid almost a decade of declines in housing production.
While this advance represents a turning point for the industry, the volume of housing constructed is still below historical levels. In 2015, production peaked at 301,886 houses; before the pandemic in 2019, 181,133 houses were built.
Factors Driving the Housing Sector’s Recovery
According to Carlos Eduardo Ramírez Capó, president of the National Chamber of Development and Promotion of Housing (CANADEVI), various favorable elements contributed to the dynamism of the real estate sector in the previous year.
- Reduced interest rates: This decreased the cost of financing, making more housing projects financially viable.
- Stable inflation: Despite tariffs applied to various productive sectors, prices of construction materials remained stable, helping contain development costs.
- Competitive bank policies: Banks maintained very attractive policies for housing project financing, making financial products more appealing.
Nearshoring and Regional Growth
The uptick in formal housing construction is also related to the reallocation of productive investments (nearshoring). Ricardo Trejo, general director of Forecastim consultancy, explained that this phenomenon, which boosted economic activity in several regions of the country in recent years, finally reflected in housing demand.
This effect was more visible in industrial and logistics development poles like Monterrey, Guadalajara, the Bajío region, and border cities like Tijuana, where formal housing construction remained active.
Impact of Vivienda para el Bienestar Program
Another crucial factor for the sector’s performance is the federal Vivienda para el Bienestar program, which aims to construct 1.8 million homes for people with incomes between one and two minimum wages.
The program is executed by the Secretariat of Agrarian, Territorial and Urban Development (SEDATU) through Fovissste, Conavi, and Infonavit.
Ramírez Capó explained that around 40% of the 700 companies affiliated with CANADEVI are actively involved in the program. However, he noted that Bienestar housing is not yet reflected in RUV figures, so its real impact on production can be observed more clearly starting from 2026.
Infrastructure and Permits: Challenges Ahead
Despite the positive environment, formal housing construction faces structural challenges that need addressing to maintain growth momentum. One of them is the availability of basic infrastructure, particularly water and energy supply.
In this context, the CANADEVI president expressed hope that the new National Water Law would generate changes ensuring water as a human right for those living in constructed homes.
In administrative matters, Ramírez Capó emphasized the need to streamline processes and strengthen urban planning at the municipal level, where some of the main bottlenecks for developers lie.
“We need to keep advancing in deregulation. Make permit processes faster. Municipalities should update their urban development plans, allowing necessary densities for all types of projects, from social interest to residential, as water, drainage, and sanitation feasibility falls under municipal jurisdiction,” he pointed out.
Key Questions and Answers
- What is the current state of formal housing construction in Mexico? The sector showed an 8.2% annual growth in 2025, with 138,645 houses built, marking a recovery after nearly a decade of decline.
- What factors contributed to the housing sector’s recovery? Factors include reduced interest rates, stable inflation, and competitive bank policies.
- How does nearshoring relate to the housing construction uptick? Nearshoring boosted economic activity in various regions, eventually increasing housing demand.
- What is the impact of the Vivienda para el Bienestar program? The program aims to construct 1.8 million homes for low-income families, though its impact on production will be clearer from 2026.
- What challenges does the housing construction sector face? Challenges include infrastructure availability and administrative processes that need streamlining.
