Mexico housing prices outpace household income growth

Housing affordability in Mexico is declining as property prices rise significantly faster than household incomes. According to data from BBVA Research and the Sociedad Hipotecaria Federal (SHF), the gap between housing prices and relative labor income has widened to 83.6 percentage points in 2025, compared to 15.1 points in 2018.

Between 2016 and 2025, the SHF housing price index increased by 108.5%, while household incomes grew by only 25%. Nationally, the average home price is approximately 1.96 million pesos, representing a 7.9% annual increase. In Mexico City, the average price is significantly higher at approximately 4.285 million pesos.

Financial barriers further complicate access to ownership. Purchasing an average home in Mexico City requires a demonstrable monthly income between 32,000 and 60,000 pesos, which exceeds the average formal worker's monthly salary of 20,000 pesos. Additionally, buyers face high upfront costs, including down payments and closing fees, and mortgage rates averaging 11.3%.