Mexican Housing Price Trends in 2024: A Closer Look at State Variations

The housing market in Mexico has shown notable growth in 2024. According to the Federal Mortgage Society (Sociedad Hipotecaria Federal, SHF), the average value of homes nationwide increased by 9.4% from January to September.

This growth is compared to the same period in 2023. This rise places the average home price at approximately 1,734,535 pesos.

During this period, 19 states surpassed the national average increase, highlighting significant regional disparities. Only 13 states experienced lower growth rates. The states with the most substantial increases in housing prices include:

Baja California Sur: 13.9%
Quintana Roo: 12.5%
Baja California: 12.4%
Puebla: 11.8%
Oaxaca: 11.7%
Sonora: 11.4%
Nayarit: 11.4%
Nuevo León: 11.3%
Chiapas: 11.2%
Guanajuato: 10.8%
Campeche: 10.7%
Colima: 10.7%
San Luis Potosí: 10.5%
Tabasco: 10.3%
Morelos: 10.1%
Chihuahua: 10%
Durango: 10%
Yucatán: 9.8%
Querétaro: 9.6%

The SHF‘s housing price index indicates that new homes experienced a growth of 9.9%, while used homes increased by 9%. Notably, used homes constituted a significant portion of sales at 63.4%, compared to new homes at 36.6%.

Mexico’s Housing Market in 2024

Further analysis reveals that single-family homes and condominiums saw a price increase of about 9.4%. Economic and social housing categories rose by 10.8%, whereas residential properties appreciated by 8.6%.

The backdrop for these developments includes a macroeconomic environment where the Gross Domestic Product (GDP) grew by 1.5% in real terms during the third quarter of 2024.

Additionally, employment figures showed a healthy increase, with permanent registered workers rising by 2.1% year-over-year as reported by the Mexican Social Security Institute.

Despite this growth, inflation remains a concern, with the National Consumer Price Index recording an inflation rate of 4.58% in September.

The average mortgage interest rate stood at 11.43% during the same quarter, which presents challenges for potential homebuyers.

These figures illustrate a complex housing landscape marked by significant regional variations and economic factors that influence home prices across Mexico.

As individuals navigate this market, understanding these dynamics is crucial for making informed decisions about homeownership and investment opportunities in real estate.