In 2025, housing prices in Mexico have become a crucial issue due to their direct impact on families’ access to a decent life and economic stability. The sustained increase in purchase and rental costs, especially in urban areas such as Mexico City, Monterrey, and Guadalajara, has highlighted the need for public policies to regulate the market and promote affordable housing.
Factors such as inflation, rising construction materials, and growing demand driven by digital nomads have contributed to this increase. This situation affects not only those seeking to purchase a home, but also the rental market, increasing the cost of daily living and displacing vulnerable communities.
Therefore, housing prices in 2025 are a key indicator of social well-being, equity, and sustainable urban development in Mexico, making it urgent to promote inclusive and sustainable housing solutions. If you want to know where it is cheapest to buy a home in Mexico, stay with us; we’ll tell you all the details.
Where is it most expensive to buy a home in Mexico?
Context: Housing prices in Mexico continue to rise, reflecting the current state of the country’s housing industry. Last March, the national value increased 6.8% compared to the same month in 2024; the average stood at 30,447 pesos per square meter.
Banorte’s Economic and Financial Analysis Department recently published its Housing Price Indicator for March, which showed that in the third month of the year, housing values nationwide grew 6.8% annually, reaching an average price of 30,477 pesos per square meter.
This increase in housing prices occurred in a context where 8.9 million people are facing housing shortages, living in spaces with the following characteristics:
Built with inadequate materials.
Lacking a toilet.
That its residents are living in overcrowded conditions (2.5 or more people per room).
What did the studies reveal?
Banorte’s analysis compiles data from 15 states in the country, where six recorded higher prices than the national average and the rest, prices below the average, i.e., 30,447 pesos.
According to the report, Mexico City recorded the highest price measured by state, i.e., 56,562 pesos, which represented an increase of 3.2% compared to the report’s base period (July 2024) and 2.6% higher than the national average.
Official data show that 50,905 people are experiencing housing shortages in Mexico City; in contrast, only 386 homes were built in the capital during the first three months of the year.
Where is it cheaper to buy a home in Mexico?
On the contrary, the state of Tamaulipas recorded the lowest value last March, with an average home price of 16,965 pesos.
The report notes that Tamaulipas’s housing market is dominated by horizontal housing (74.7% of the market) and new spaces, with a 55.8% share.
The increase in housing prices seen in Mexico in recent years has impacted the ability of low-income people to access housing.
This disparity has led to overpricing of housing, as it is estimated that, in 2022, around 20% of households paying rent or a mortgage spent more than 30% of their income on housing, which “is an excessive burden.”
The report indicates that, to address the problem of housing overruns, it is necessary to build 2.3 million homes, which are required due to population growth, as well as expand the coverage of public programs focused on providing housing solutions.
Source: lasillarota
