Housing Affordability Crisis in Mexico
Mexico faces a significant housing deficit of 8 million people, yet three of its cities have been identified as having some of the most expensive housing prices in Latin America. This disparity highlights that owning a property in urban areas with greater opportunities remains out of reach for many.
Top Five Cities with Highest Housing Prices
- Montevideo: $3,330 per square meter
- Mexico City: $2,666 per square meter
- Monterrey: $2,592 per square meter
- Buenos Aires: $2,586 per square meter
- Guadalajara: $2,369 per square meter
The cities with the most affordable housing prices are Quito ($1,215), Rosario ($1,614), Córdoba ($1,628), and Panamá ($1,804) per square meter.
Mexico City’s Persistent High Housing Costs
The Mexico City continues to hold the second position in the ranking of cities with the most expensive square meter housing prices in Latin America, maintaining this position since September 2024.
Study Methodology
The Relevamiento Inmobiliario de América Latina (RIAL Di Tella – Inmuebles24) study considers apartment prices in 12 neighborhoods across seven Latin American countries. The calculation is based on listed sale advertisements, primarily from Grupo QuintoAndar’s websites.
Price Trends
Between September 2024 and March 2025, housing prices in Latin America experienced a nominal increase of 1% in dollars and a decrease of 2.2% in local real currency. This means that the required amount for purchasing a square meter rose in nominal dollars but fell when adjusted for US inflation and local currency inflation.
- Mediated in nominal dollars, the cities with the highest percentage increase in housing prices per square meter were Córdoba (6.5%), Rosario (4.3%), and Ciudad de Panamá (2.5%).
- The largest drops occurred in Montevideo (-3.6%), Mexico City (-1.5%), and São Paulo (-1.1%) over the past six months.
Housing Affordability Challenges
Although the housing price variation has not been significant according to Relevamiento Inmobiliario, accessing a home becomes increasingly complex. Factors contributing to this housing crisis include the disparity between property values and people’s incomes.
Traditionally, households are advised to spend up to 30% of their income on housing without compromising other needs. However, BBVA Research analysis shows that 20% of the 8.5 million households paying rent or mortgage exceed this limit.
Notably, the Mexican entity with the highest percentage of households incurring housing cost overruns is the City of Mexico, being the second most expensive in Latin America. Four out of ten households pay more than one-third of their income for housing, which impacts other aspects of their lives.
