Introduction
Mexico City is facing one of its most significant water crises, grappling with both shortages and floods. Recent rains have increased the Sistema Cutzamala’s water level to 48.5% of its capacity, according to the National Water Commission (Conagua). However, alerts remain active.
Water Storage and Capacity
According to the Mexico City Integral Water Management Secretariat (Segiagua), in May 2025, there were 379.3 million cubic meters stored, representing 49% of the system’s capacity—a significant improvement compared to the previous year.
Impact on Housing Market
The water supply is increasingly influencing Mexico City’s real estate market, affecting both property value and homebuyers’ decisions. Now, a property’s worth depends not only on its location, size, or design but also on its access to water.
Expert Opinion
“Mexico City remains under hydrological stress, meaning there’s a threat of running out of potable water to meet its residents’ basic needs,” said Alejandro Sena, Dinero.mx’s general director.
Sena emphasized that water shortages have become a crucial factor due to increased costs associated with homes, such as hiring water tankers and decreased demand for houses or apartments in affected areas, leading to lower property values.
Vulnerable Alcaldías
Among the most vulnerable alcaldías is Tlalpan, which has experienced a significant decrease in water supply due to population growth, massive leaks causing 45% liquid loss, and illegal connections. Colonias like San Fernando and Padierna already face the consequences.
Iztapalapa, Mexico City’s most populous alcaldía (over 1.8 million inhabitants, according to the 2020 Population and Housing Census), has struggled for years with a structural water deficit. Its eastern location complicates the distribution of Cutzamala-sourced water. Colonias like Santa María Aztahuacán and Mixcóatl are red zones for water scarcity.
Iztacalco has registered one of the highest levels of impact, with residents relying on tankers arriving only once a week. Colonias like Tlacotal and Ramos Millán showcase deteriorating water infrastructure and neglected maintenance investments.
Water Supply as a Housing Indicator
As a result, water supply has become a critical factor in evaluating real estate properties. Investing in areas at risk of shortages means higher expenses for homeowners and potential depreciation of the property.
Key Questions and Answers
- What is the current water situation in Mexico City? The city faces a significant water crisis, with both shortages and floods. Recent rains have increased the Sistema Cutzamala’s water level, but alerts remain active.
- How does the water shortage affect housing values? The water supply’s availability now plays a crucial role in determining property value. Areas with water shortage risks may lead to higher expenses for homeowners and potential property depreciation.
- Which alcaldías are most affected by water shortages? Tlalpan, Iztapalapa, and Iztacalco are among the most vulnerable. They face issues like population growth, leaks, and illegal connections, causing water deficits.
