House prices in Mexico, by state 2023

In 2023, Mexico City was the most expensive place to purchase residential property in Mexico. On average, a property in the country's capital city would cost almost 3.7 million Mexican pesos in the third quarter of the year, approximately double the national average.

The Mexican housing market

The housing market is one of the most essential and stable markets in Mexico, contributing with approximately six percent of the country's GDP. The market is predominantly an owners market, with nearly 69 percent of homes in the country fully paid off by their holders, while only 15 percent of homes are rented. Up until the beginning of 2021, housing prices had been increasing nationwide. Between Q1 2020 and Q1 2021, the country recorded a 15 percent growth in residential property prices.

A decrease in demand

The Covid-19 pandemic hit the real estate industry in Mexico through its demand. It was estimated that overall interest in housing decreased by nine percent between 2019 and 2020. Moreover, the number of approved mortgage loans was already declining before 2020. While in 2019, around 519 thousand home loans were granted in the country, the figure was equal to 609 thousand - just five years earlier.