Mexico

Mexico is experiencing a persistent housing shortage driven by rapid urbanization, population growth, and economic disparity, with a deficit projected to reach 2.8 million homes by 2025. As of the 2020 census, more than 80% of housing units are occupied, but many are of substandard quality. Home ownership in Mexico is high, with recent estimates indicating around 60-65% of households own their home, while roughly 15-20% live in rental properties. The remainder is made up of informal arrangements or self-built homes.

Median apartment prices vary widely by region, but as of 2025, the average price for buying an apartment across the country is approximately 1,700 euros per square meter. Rental prices average around 9 euros per square meter per month in urban centers, but rents can be significantly higher in cities like Mexico City or Tijuana.

Publicly owned housing has played a limited role, as Mexican housing policy since the 1990s has shifted away from state construction. Most affordable and social housing is now delivered via private developers, often subsidized by government funds. Social housing specifically targets vulnerable groups and is often associated with government-supported programs, but it differs from traditional public housing: public housing implies direct government ownership and management, which is now rare in Mexico. Today, less than 2% of the market is publicly owned or managed; the vast majority is owner-occupied or privately rented. Social housing initiatives are typically time-limited or location-specific, dependent on current political priorities.

Mexico’s housing crisis is marked by a persistent shortage and growing unaffordability, with the problem most acute in major urban centers such as Mexico City, Guadalajara, and Monterrey. Construction of new homes is significantly lagging demand: only about half of the roughly 400,000 homes sold each year are newly built, and just 128,143 new units were completed in 2024, the lowest in over a decade. Housing prices surged by nearly 60% between 2016 and 2022—while average wages increased by just over 4%—making home ownership and rental increasingly inaccessible for many families. In Mexico City alone, an estimated 500,000 new homes are needed to meet demographic demand, but much of the new supply caters to upper-income buyers or luxury rentals, deepening inequality.

Low- and middle-income households are most affected, often forced into self-built or informal housing in peripheral zones with limited access to jobs and services. Gentrification in desirable neighborhoods has displaced long-time residents, and rising rents have led to overcrowding and social fragmentation. Vulnerable groups—such as women-headed households, the elderly, and Indigenous populations—face even greater barriers to securing adequate housing. Residential segregation, poor housing quality, and access issues are exacerbated by regulatory hurdles, high land and construction costs, and limited access to affordable credit.

The Mexican national government has made affordable and sustainable housing a stated priority in response to the deepening housing crisis. In October 2024, it announced a six-year plan with three main targets: build one million low-cost homes, legalize one million informal homes, and rehabilitate 450,000 existing homes; this is backed by an investment of 600 billion pesos (about 30 billion euros). The plan aims especially to support vulnerable groups such as women-led households, Indigenous people, youth, and the elderly.

Key programs include direct subsidies for low-income groups, legal assistance to regularize land tenure for informal settlements, and renovation grants for existing substandard housing. The government is also supporting affordable housing via its national mortgage agency, Infonavit, which has increased lending to low- and middle-income households. However, most affordable and social housing is still delivered by private developers rather than direct state construction.

Urban planning reforms are also being discussed to promote higher-density housing in strategic city areas and streamline the approval process for new developments. Efforts to expand public transport access and basic infrastructure in peripheral zones are meant to promote more sustainable urban growth. Despite these efforts, supply remains far below demand and most new housing is still outside the affordable range for many urban residents.

En español: El gobierno federal anunció en 2024 un plan sexenal para construir un millón de viviendas asequibles, legalizar otro millón y rehabilitar 450,000 viviendas, con una inversión de 600 mil millones de pesos. Las acciones incluyen subsidios, regularización de asentamientos y créditos a través de Infonavit. La meta es priorizar hogares vulnerables y promover reformas urbanas para aumentar la densidad y agilizar permisos en zonas estratégicas.

Housing cooperatives in Mexico play a marginal role in the national housing sector, with their overall share of the housing market remaining very low and not precisely quantified in official statistics. The concept of cooperative housing has gained renewed interest, particularly as a response to restrictive urban models and sharply rising prices in metropolitan regions. Initiatives such as panel discussions and local projects in states like Nuevo León and Mexico City reflect grassroots and academic pushes to formalize and expand cooperatives, but significant barriers persist—including issues with legal recognition, access to land, and construction permissions.

The sector’s development is gradual, mainly driven by civil society and local actors rather than through comprehensive nationwide policies. While there are active cooperatives—focused on solidarity, self-management, and collective ownership—they are isolated examples rather than a mainstream model. The Mexican government’s current major housing programs and investments prioritize direct subsidies, legalization of informal housing, and partnerships with private developers to boost affordable housing supply, rather than explicit support or promotion of the cooperative housing model. Advocacy groups suggest the state could help by easing cooperative formalization, facilitating land acquisition, and providing development incentives, yet tangible federal action remains limited. Despite growing advocacy, cooperative housing constitutes only a very small fraction of all housing units in Mexico.