Violence Impacts Housing Market in Sinaloa
Insecurity has become a barrier to the growth of the real estate market in states where violence has escalated. For instance, in Sinaloa, the value of housing has grown below the national average so far in 2025.
According to data from the Index of Prices of the Federal Housing Society (SHF), Sinaloa registered an annual increase of 5% in housing value during the first quarter of the year, below the national average of 8.2% annually.
Karim Antonio Oviedo Ramírez, national president of the Mexican Association of Real Estate Professionals (AMPI), stated that this deceleration reflects the impact of the violence registered in recent months in cities like Culiacán and Mazatlán.
“Many developments have not been able to complete their construction commitments, and the sale of housing has fallen by up to 35% this year. As long as security does not improve, there will be no housing sales,” he said in an interview with Econohábitat.
By the end of the first quarter of 2025, nine out of ten people in Culiacán considered it unsafe to live in their city, according to data from the National Urban Public Security Survey (Ensu), prepared by the National Institute of Statistics and Geography.
In Mazatlán, the local AMPI delegation reports a wide offering of built-up real estate developments before the surge in violence. However, uncertainty has halted sales, forcing developers to lower property prices to maintain market competitiveness.
“Housing value is highly impacted by the perception of security. Extreme situations, like those in Sinaloa due to conflicts between drug trafficking cartels, affect the real estate industry. For months now, there has been virtually a curfew in some areas, which clearly affects the housing sector,” added Leonardo González, Algorym’s country lead in Mexico.
Tlaxcala Rebounds
Contrary to Sinaloa, Tlaxcala led the growth in housing prices nationally at the beginning of the year. The value of properties in the state increased by 14.7% annually during the first quarter, the highest increase among all the country’s entities.
Karim Oviedo pointed out that this phenomenon is due to the development of new subdivisions and the boom in industrial activity, particularly the automotive sector.
Apart from being a small entity highly sensitive to real estate operations, Tlaxcala has stood out as a housing option for buyers due to its proximity to Mexico City, according to González.
“There is a high housing demand in Mexico City that has not been met due to the scarcity of affordable homes, which is being absorbed by neighboring states like Tlaxcala. Additionally, its natural growth as a central state contributes to this trend,” said Algorym’s country lead in Mexico.
Key Questions and Answers
- What is the main issue affecting housing markets in Sinaloa? Violence and insecurity have caused a 35% drop in housing sales, with developers struggling to complete construction projects.
- How has violence impacted housing values in Sinaloa? The annual increase in housing value is 5%, below the national average of 8.2%.
- Which state has seen a rise in housing prices? Tlaxcala has experienced a 14.7% annual increase in housing prices, the highest among all Mexican states.
- What factors contribute to Tlaxcala’s housing market growth? The development of new subdivisions and the boom in industrial activity, particularly the automotive sector, have driven this growth.
- Why is Tlaxcala an attractive option for housing buyers? Its proximity to Mexico City and natural growth as a central state have increased housing demand, which is not being met in the capital.
