Builders focus on smaller spaces
The supply of housing from 25 to 75 m2 increased 14.3% between 2019 and 2024; while those of more than 100 m2 contracted 13% in the same period
The size of housing in Mexico has been reduced over the years, especially in the main cities of the country, where it is increasingly difficult to find land for housing construction.
According to an analysis by the real estate platform Propiedades.com, the supply of smaller apartments, between 25 and 75 square meters (m2), increased 14.3% between 2019 and 2024. Meanwhile, the availability of vertical homes of more than 100 m2 contracted 13% in the same period.
Juan David Vargas, general manager of Propiedades.com, explained that in Mexico there are various market trends, as well as population and economic growth that affect housing development.
“The analysis we developed highlights a clear trend towards preference for smaller apartments in the Mexican market, which can be analyzed in light of demographic and economic trends,” said the specialist.
Figures from the National Survey of Demographic Dynamics (Enadid) 2023, prepared by the National Institute of Statistics and Geography (Inegi), show that the total fertility rate (TFR) in Mexico went from 2.07 daughters or sons per woman in 2018 to 1.60 in 2023.
“The decline in fertility and the trend towards family planning may be driving demand for smaller homes, such as apartments with only two bedrooms or even loft-type spaces,” according to the expert.
On the other hand, there is the relationship between the cost of living and the monthly income of Mexicans. According to the Federal Mortgage Society (SHF), the price of housing acquired with a mortgage loan grew 9.7% during the first quarter of 2024.
In this sense, Propiedades.com indicated that the increase in the supply of smaller homes, but which retain two bedrooms, shows that the increase in the cost of acquiring a home makes families opt for cheaper options, such as smaller apartments.
Renting smaller
The phenomenon of smaller houses is also reflected in the rental segment. The supply of smaller apartments for rent grew 6.17% between 2019 and 2024; at the same time, apartments of more than 100 m2 decreased 9.51%, according to Propiedades.com.
It is worth mentioning that, by size, those units between 50 and 75 m2, with two bedrooms, represent 20% of the total supply of vertical rental housing, and 28.7% of the inventory for sale.
In this regard, Vargas pointed out that the change in housing preferences will have a significant impact on the Mexican real estate market in the coming years, so developers will have to adapt their projects to the new demand to offer options that fit the needs, payment capabilities and lifestyles of families.
Source: eleconomista
