Construction costs in Querétaro have increased by 7.62%, putting additional pressure on the price of new housing in the state. As a result, the most affordable homes currently available in the state’s housing market are priced at approximately 1.1 million pesos.
The increase in construction costs is reflected directly in the final price of housing, making it increasingly difficult to produce homes at prices accessible to families with lower and middle incomes.
The situation is particularly relevant because Querétaro continues to experience strong demand for housing associated with its industrial, economic and demographic growth. The expansion of manufacturing and technology companies and the arrival of new investment have contributed to continued demand for residential properties.
At the same time, the cost of producing new housing is affected by the price of construction materials, land, infrastructure, financing and other expenses associated with development. These factors place upward pressure on the final price paid by buyers.
The increase also adds to the affordability problem in the state. A home costing around 1.1 million pesos is already beyond the reach of many families who depend on conventional housing financing, especially when the cost of credit and other household expenses are taken into consideration.
The housing market in Querétaro has faced additional pressure because the state has limited availability of land suitable for affordable residential development in locations close to employment centers. The cost of land and urban infrastructure can significantly increase the total price of a housing project.
Another factor affecting housing costs is the regulatory and infrastructure burden associated with residential construction. Developers must account for urbanization, water, drainage, electricity, roads and other services, all of which add to the cost of bringing a home to market.
The increase in construction costs occurs within a broader national environment in which new housing prices have also continued to rise. During the first quarter of 2026, the price of housing purchased through mortgage financing in Mexico increased 8.7% annually, while new housing registered a 9.1% increase, according to data from the Sociedad Hipotecaria Federal.
The difference between new and used housing has become increasingly important. New properties tend to experience stronger price increases because they incorporate the current cost of land, construction materials, labor, financing and infrastructure, while existing properties do not carry all of those production costs in the same way.
In Querétaro, the housing market is also being affected by the state’s economic expansion. The state has become an important location for manufacturing and technological investment, increasing the need for housing near employment centers.
The expected development of the Mexico–Querétaro train could add further pressure to housing demand. Local officials have warned that people living in the Valley of Mexico and neighboring states could find it attractive to move to the Querétaro metropolitan area because of its economic opportunities and improved connectivity.
The combination of rising construction costs and growing demand presents a challenge for the production of affordable housing. Industry representatives and authorities have discussed the need to make land available, simplify procedures and improve the conditions necessary for residential development.
At the national level, construction organizations have also warned that the maximum price established for some federal affordable-housing programs does not necessarily correspond to the cost of land and construction in major urban areas. This creates a risk that affordable housing developments will be pushed toward peripheral areas where land is cheaper but farther from employment centers and services.
The increase in Querétaro therefore affects not only developers but also potential buyers, particularly households searching for lower-cost housing. With construction costs increasing and the least expensive homes already reaching approximately 1.1 million pesos, access to homeownership remains one of the major challenges facing the state’s housing market.
Source: oem
