Introduction
In 2024, housing prices in Mexico continued their upward trend, albeit with a slightly slower growth rate compared to previous years. According to the Sociedad Hipotecaria Federal (SHF) Housing Price Index, the average national value of a home purchased through a mortgage loan was 1,736,349 pesos.
Regional Variations in Housing Prices
Upon examining housing prices by federal entity, the Mexico City metropolitan area emerged as having the highest average prices in the country. The average price for a home in Mexico City was 3,855,629 pesos.
This figure represents a 5.8% increase compared to the previous year.
Second and Third Most Expensive Housing Markets
Baja California Sur and Querétaro followed closely behind Mexico City, occupying the second and third spots in the ranking of the most expensive housing markets by the end of 2024.
Who are these entities, and why are they relevant?
Mexico City, the capital and most populous city in Mexico, is a major economic, cultural, and political center. Its high housing prices reflect the city’s desirability due to its robust job market, world-class amenities, and historical significance. The city’s continuous growth attracts both domestic and international residents, driving up demand for housing.
Baja California Sur is a coastal state known for its stunning landscapes, beaches, and growing tourism industry. The region’s popularity among both locals and foreigners has led to increased housing demand, pushing prices upward.
Querétaro, another rapidly developing state, boasts a thriving manufacturing sector and is home to numerous international companies. Its strategic location, coupled with a high quality of life, has made Querétaro an attractive destination for both businesses and residents.
Impact on Residents and the Broader Economy
Rising housing prices in these federal entities have significant implications for residents and the broader economy. Higher housing costs can strain household budgets, particularly for lower- and middle-income families. This may lead to increased financial stress and reduced disposable income, potentially impacting local businesses and the overall economic growth.
On the other hand, robust housing markets can stimulate construction and real estate development, creating jobs and contributing to economic expansion. Moreover, increased property values can benefit homeowners through capital appreciation.
Key Questions and Answers
- What is the average housing price in Mexico for 2024? The national average value of a home purchased through a mortgage loan was 1,736,349 pesos.
- Which federal entity has the highest housing prices? The Mexico City metropolitan area has the most expensive housing market, with an average price of 3,855,629 pesos.
- What are the second and third most expensive housing markets in Mexico? Baja California Sur and Querétaro follow closely behind Mexico City in terms of housing prices.
- How do rising housing prices affect residents and the economy? While increased housing costs can strain household budgets, robust housing markets can stimulate construction and real estate development, contributing to economic growth.
