Costa Rica housing report shows San José population decline and credit gaps

A new report titled ‘Balance y Tendencias del Sector Vivienda 2025’ reveals a significant demographic shift in Costa Rica. The central districts of San José have seen a 46% population decline between 1963 and 2022, as the Greater Metropolitan Area (GAM) expands toward peripheral zones. Despite this exodus, researchers from the University of Costa Rica, the Federated College of Engineers and Architects (CFIA), and Gestionando Hábitat identified that underutilized buildings in the capital could potentially house up to 1,100 new residents.

The study highlights a paradox in the national housing market: while construction activity is surging, affordability and financing remain major obstacles. In 2025, residential permits reached the second-highest level in 13 years, with over 2.6 million square meters projected. However, only 8.3% of Costa Rican households use mortgage credit to pay for their homes, significantly lower than the OECD average of 24.7%.

High land costs in the GAM, averaging $358 per square meter, continue to pressure housing access. The report suggests that addressing the housing deficit requires focusing not just on the volume of construction, but on location, affordability, and credit accessibility.