HomeFINANCEEvolution of housing supply and demand in Mexico 2022

Evolution of housing supply and demand in Mexico 2022

The economic recovery that began in the country during 2021 has had repercussions in different sectors, including the real estate market. Learn about its effects on the supply and demand for housing in Mexico.

The real estate sector is one of the pillars of the national economy. As such, it has resisted the economic crisis caused by the pandemic, adapting to new market conditions and offering new and better housing solutions.

Among the main changes in housing supply and demand in Mexico, the low mortgage interest rates offered in the different financing products belonging to national banks, whose intention is to encourage the acquisition of credits, stand out.

For their part, the government housing institutions, Infonavit and Fovissste, created new credit schemes that improve the conditions to obtain a loan for the acquisition, remodeling or construction of housing.

Next, we detail what the evolution of the real estate market has been and what is the forecast that these changes allow us to visualize for the current year.

Housing demand is on the rise

In the country, the demand for housing is generated by 4 main factors:

  • Formation of new households: the creation of new families looking for a home to settle.
  • Housing lag: which includes all those homes that do not meet the ideal characteristics, so their owners require financing to condition the property.
  • Housing mobility: that is, changes of residence derived from the search for new opportunities or the interests of each person.
  • Origination Cradles: They are the families that, thanks to the acquisition of a formal job or an improvement in their salary level, acquire the possibility of accessing a mortgage loan.

As a consequence of these 4 factors, the estimates for 2021 allowed for a demand of more than 805 thousand financings, mainly required for the acquisition of new housing. This, despite the fact that the price of housing during 2020 increased by 5.8%, according to the Federal Mortgage Society.

As a result, according to INEGI data, the real estate sector contributed 5.8% to the country’s Gross Domestic Product (GDP). In figures, this is equivalent to more than one thousand 273 million pesos. If we add to this the increase in interest in acquiring a home of their own by the millennial generation, we can glimpse a constant growth in the demand for housing in the coming year.

Likewise, the greatest demand for housing in the country is concentrated in urban areas, a phenomenon that is due to its high rate of population growth. Mexico City and its metropolitan area, Nuevo León, Chihuahua, Jalisco and Baja California are the regions with the highest demand.

It is worth mentioning that the middle and residential housing segments have been the ones that experienced the greatest recovery in their level of demand. Most of the population is interested in acquiring private homes that offer more than 120 square meters and have amenities such as balconies, gardens or terraces, in addition to the presence of an office or study inside the property.

Infonavit leads the granting of mortgage loans

In response to this demand, Infonavit is the institute that grants the most mortgage loans nationwide. By the end of 2021, said institution closed with a figure of 530 thousand 525 credits placed.

For their part, the institutions belonging to the national banking system have also achieved an increase in the granting of loans. According to data from the Association of Banks of Mexico (ABM), at the end of the year, loans equivalent to 245 million pesos were granted.

As an effect of the recovery that has been achieved over the past year, Infonavit’s forecast for 2022 is to grant between 595 thousand and 611 thousand credits. Likewise, the director of said organization, Carlos Martínez Velázquez, mentions that it is planned to generate more than 20 new products that make up the Infonavit catalog of options.

Regarding the options in the housing market, several real estate development projects They will begin to be carried out this year, while others will be resumed after a pause forced by the health crisis. In the Single Housing Registry (RUV) alone, more than 200,000 homes have been registered in construction plans.

However, one of the aspects that play against it is the increase in the cost of construction materials derived from their scarcity. In the last year, the cost of construction has risen by 8 percent, causing the final price of housing to rise as well.

However, the supply and demand for housing in Mexico will continue to experience favorable changes for those who wish to invest in their own assets during this year.

Remember that in vivancios, the largest real estate portal in Mexico, you will find a wide catalog of houses for sale, as well as housing rental offers. Take the first step to find your new home!

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