Many young Mexicans wonder if they can realistically aspire to own a home in the future. According to industry experts, the reality is complex and challenging for most.
The Financial Hurdle
Luis Armando Díaz Infante, the National Secretary of the Mexican Construction Industry Chamber (CMIC), explained that currently, paying off a mortgage for a 2 million pesos home requires approximately 20,000 pesos per month.
- To qualify for this loan, a family must demonstrate monthly income of at least 60,000 pesos, equivalent to seven minimum wages.
- However, 70% of the population does not meet this economic level.
Díaz added, “The property value in cities exceeds wage increases. This necessitates the construction of affordable housing with flexible schemes or rental options.”
Demographic Challenge
Despite the significant growth in the minimum wage, rising from 88 pesos per day in 2018 to 249 pesos in 2024 (a 283% increase), the impact on home-buying capacity remains limited.
- Approximately 55.7% of the workforce is not affiliated with social security institutions, preventing them from accessing Fovissste or Infonavit credits—crucial tools for home purchases in Mexico.
<2>The majority of the economically active population earns between one and two minimum wages, a key segment for any housing development strategy.
Changes in family structure, increased divorce rates, and longer life expectancy have fueled a growing demand for housing.
The CMIC estimates that by 2025, Mexico will need 2.8 million new homes, and by 2030, this demand will escalate to an accumulated need of 6.6 million units.
Housing shortage is particularly acute in six states: Veracruz, Coahuila, Morelos, Oaxaca, Guerrero, and Baja California, which account for 50% of the national deficit.
“To tackle this issue, urban development plans must be updated, affordable land reserves created, acquisition schemes diversified, and economic support provided for housing targeted at vulnerable sectors,” Díaz stated.
Key Questions and Answers
- Q: Can young Mexicans realistically aspire to own a home? A: The reality is complex, with most facing significant financial and demographic challenges.
- Q: What are the income requirements for a mortgage in Mexico? A: A family must demonstrate at least 60,000 pesos in monthly income, equivalent to seven minimum wages.
- Q: How does the property market in Mexican cities compare to wage growth? A: Property values have outpaced wage increases, making homeownership more challenging.
- Q: What percentage of the Mexican workforce can access home purchase credits? A: Only about 44.3% are affiliated with social security institutions, enabling them to access Fovissste or Infonavit credits.
- Q: How has the minimum wage in Mexico changed since 2018? A: It has increased by 283%, from 88 pesos per day in 2018 to 249 pesos in 2024.
- Q: What is the projected housing demand in Mexico by 2025 and 2030? A: By 2025, 2.8 million new homes are needed, and by 2030, the demand is expected to reach 6.6 million units.
- Q: Which states face the most severe housing shortages in Mexico? A: Veracruz, Coahuila, Morelos, Oaxaca, Guerrero, and Baja California account for 50% of the national housing deficit.
