Introduction to the Changing Housing Landscape in Mexico
The escalating cost of housing in Mexico has not only reshaped family budgets but also the size of their homes. Small apartments have become increasingly popular in major metropolitan areas, according to an analysis by Propiedades.com.
Growth in Compact Housing Inventory
Over the past five years, compact living spaces have seen a steady increase in availability in Mexico City, Monterrey, and Guadalajara. Meanwhile, medium-sized homes (60 to 100 square meters) have lost market share, as reported by Juan David Vargas, the general manager of Propiedades.com.
“From 11% in 2020, the inventory of apartments between 30 and 60 square meters rose to over 14% in 2025,” Vargas explained. “This may seem like a modest advance, but the significance lies in its speed. This segment gained three percentage points in just five years, while medium-sized homes lost four percentage points during the same period.”
Debate on Living Quality and Space Standards
This trend has sparked discussions about the quality of life. Olivia Garza de los Santos, president of the Housing Development Planning Commission in Mexico City’s Congress, has proposed amending the local Housing Law to ensure that publicly-built homes in Mexico City have a minimum of 62 square meters.
“Building more homes is not enough; we must guarantee that families have adequate living space. We need to make public housing a true home, not just a survival space,” Garza stated.
Garza asserted that in recent years, the commodification of housing has led to projects with units as small as 36 square meters, a trend she believes should be corrected to protect residents.
Smaller Size, Higher Turnover
The surge in compact apartments is linked to the rising cost of land and construction expenses, making larger homes less accessible, according to Vargas.
“In Propiedades.com, smaller spaces typically sell within 90 days, while units of 60 square meters or more take around 180 days,” Vargas explained. “This occurs because, except for luxury or highly exclusive locations, the price per square meter is quite similar. However, reducing the total area makes these units more affordable for buyers.”
Widespread Impact
The trend of reduced living space is not exclusive to Mexico City. In Guadalajara, Jalisco, the shift has been more pronounced. Units between 30 and 60 square meters increased from 6.6% in 2020 to 15% in 2025, while large properties (over 100 square meters) decreased from 68% to 54%.
“Land costs have significantly risen in central or well-connected areas, prompting vertical development and smaller housing units. Additionally, the demographic profile has shifted towards more single individuals or childless couples who don’t require large spaces,” Vargas noted.
Monterrey, known for larger homes, still has 68% of its offerings as spacious properties in 2025. However, properties under 80 square meters have grown from 12% to 20% over the past five years, indicating that even in a city of large homes, there is a move towards compact living.
Key Questions and Answers
- What is driving the trend of smaller apartments? The rising cost of land and construction expenses has made larger homes less accessible, prompting developers to focus on smaller, more affordable units.
- How have living standards been affected by this trend? There is ongoing debate about the quality of life in smaller apartments. Some, like Olivia Garza de los Santos, advocate for minimum living space standards in publicly-built homes.
- Which cities are experiencing this trend? The shift towards compact housing is evident in Mexico City, Monterrey, and Guadalajara, with varying degrees of intensity.
- What are the implications for homebuyers? Smaller apartments tend to sell more quickly, making them a more accessible option for many homebuyers.
