Housing affordability and supply challenges in Mexico and Spain

In Mexico, a report by BBVA Research highlights a widening gap between household incomes and real estate prices. Between 2016 and 2025, property prices rose by 108.5 percent, while incomes grew by only 25 percent, resulting in an 83.6 percentage point gap. This trend has fueled social demands for affordable housing in cities like Mexico City and Guadalajara, amid intensifying gentrification.

In Spain, the Rental Housing Forum 2026 addressed a significant housing deficit. While Spain creates approximately 240,000 new households annually, only 93,000 homes are completed, leading to an accumulated deficit of about 750,000 units. Experts suggest that closing the social and affordable housing gap compared to other European nations would require approximately 270 billion euros in public and institutional investment.

Industry leaders in Spain noted that while real estate investment rose by 25 percent in the first nine months of 2026, regulatory changes and land availability issues continue to hinder the transformation of capital into new housing supply.