Housing markets face affordability and mortgage challenges in Mexico, Argentina, and Spain

Real estate markets in Mexico, Argentina, and Spain are facing significant shifts driven by affordability challenges and interest rate fluctuations.

In Mexico, the gap between income and housing prices reached 83.6% in 2025, according to BBVA. While the construction sector's GDP grew by 2.1% in the first half of 2026 due to public infrastructure spending, mortgage growth remains marginal. Commercial bank mortgage lending saw a contraction of 1.9% in real terms, though public institutions like Infonavit and Fovissste reported increases.

Argentina is seeing a decline in homeownership, which fell from 72% to 68% over the last decade, while the proportion of renters rose to 20%. Mortgage loans have dropped 37% in the first nine months of 2026. In Córdoba, a surplus of rental supply has led to real decreases in rental prices for apartments and houses, despite nominal increases due to inflation. Additionally, the resurgence of UVA mortgage credits shows significant interest rate variations depending on whether clients direct their salaries to specific banks.

In Spain, the mortgage market is reacting to a rising Euribor, which reached 3.247% in September 2026. This has increased monthly payments for variable-rate holders. Banks like Bankinter have begun raising interest rates across various modalities. Meanwhile, in Extremadura, the 'Aval Joven' program has supported over 2,600 young people by providing public guarantees to facilitate access to first homes.