House Prices in Mexico Increase by 56.9% from 2016 to 2022

From 2016 to 2022, the price of housing in Mexico rose by 56.9%, which contrasts with the increase in family income from employment, which only grew by 2.5% during the same period, making it more difficult for low-income populations to acquire their own home, according to BBVA Research’s Real Estate Situation Report for the second quarter of 2024.

In a press conference, Carlos Serrano, BBVA’s Chief Economist, and Samuel Vázquez, BBVA’s Principal Economist, explained that the increase in housing prices is positive at the macroeconomic level for property owners, as it increases their wealth, but it is unfavorable for those who cannot afford a home because “it is becoming more expensive.”

For this reason, Samuel Vázquez explained that, based on data from the National Household Income and Expenditure Survey (ENIGH) from 2016 to 2022, conducted by the National Institute of Statistics and Geography (INEGI), the gap between income and expenditure during this period is the result of “the sharp contraction in 2020 due to the pandemic, and even though there was a recovery in 2022, it barely surpassed 2016 levels.

Carlos Serrano indicated that mortgage lending increased by 11.4% year-on-year in the first half of 2024, with a total of 232.9 thousand loans; meanwhile, the total loan amount grew by 2.2% compared to the first half of 2023.

However, he revealed that this growth is driven by an increase in public sector loans, while bank loans dropped from 61.1 thousand mortgages in the first half of 2023 to 57.4 thousand loans in 2024, a 6.8% annual decline.

When comparing the second quarter, financing amounted to 30.4 thousand loans, compared to 27 thousand in the previous quarter, showing the beginning of a potential recovery in bank loans.

Con información original publicada en El Heraldo de México.