Introduction to the Changing Housing Market in Mexico
The housing market in Mexico is undergoing a significant transformation, driven by the preferences of newer generations. Millennials and Gen Z, born between 1991 and the early 2000s, are beginning to enter the home-buying scene. However, they face various economic challenges and have distinct expectations compared to previous generations.
Key Players and Their Impact
Alejandro Sena, the General Director of Dinero.mx, highlights that millennials and Gen Z—currently aged 25 to 34—are at a crucial stage for applying for home loans.
According to Sena, millennial participation in Mexico’s housing market has increased by over 50% in the last five years. Banamex data indicates that 52% of their credit requests for home loans in 2024 were made by millennials.
With an estimated 30 million millennials in Mexico, according to the National Institute of Statistics and Geography (Inegi), this generation represents a quarter of the country’s total population. Their role in the housing sector is crucial, as they are expected to constitute 75% of the workforce by 2025.
What Do They Seek in a Home?
Newer generations are not just looking for a house; they want a space that aligns with their lifestyle, values, and current needs. Here are the main characteristics shaping their preferences when acquiring a property:
- Efficiency and Optimized Space: Millennials and Gen Z prioritize smaller, functional homes. This approach reduces costs associated with both purchasing and maintaining a property while allowing for better location choices.
- Used Homes: The Sistema Nacional de Información e Indicadores de Vivienda (SNIIV) reports that 234,000 home credit applications were made for used homes in 2024. This option can be 20-30% cheaper than new properties, making it more appealing for those starting their financial journey.
- Peripheral Cities: Remote work has enabled many young people to relocate to cities with lower population density, less traffic, and more affordable housing. Cities like Querétaro, Tijuana, and Mérida have gained prominence as housing destinations for these generations.
- Multifunctional Spaces: With the rise of remote work, homes offering dedicated areas for home offices and distinct zones for rest or social interaction are particularly attractive to young millennials and Gen Z.
- Investment Properties: Millennials and Gen Z also view housing as a tool to generate income beyond capital appreciation. Dinero.mx reports that 45% of young buyers acquire properties for investment purposes, especially in tourist areas with high rental potential.
Key Questions and Answers
- Who are Millennials and Gen Z? Millennials are individuals born between 1981 and 1996, while Gen Z comprises those born from 1997 onwards. Both generations are currently aged 25 to 34.
- Why are they relevant in Mexico’s housing market? With an estimated 30 million millennials and Gen Z in Mexico, representing a quarter of the population, their role in shaping housing trends is significant. They are expected to constitute 75% of the workforce by 2025, making their influence indispensable.
- What are their housing preferences? Newer generations prioritize smaller, functional homes in peripheral cities with lower costs. They also consider used homes and properties as investment opportunities.
- What challenges do they face? Despite their growing participation, millennials and Gen Z still encounter economic barriers. Financial planning is crucial for them to achieve homeownership.
