The 2013 housing market crash left Mexico´s construction sector largely affected and recovery is slowly on its way, with Business Monitor International predicting a 3.1% growth from 2014 to 2016. The recovery can be attributed to an increase in residential construction, which is fueled by the urban sprawl, despite Mexico’s government´s efforts to slow urban population growth. Currently, Mexican cities of over 1 million inhabitants count with an average of only 36 households per hectare, which results in high costs for the public sector. According to PwC, Peña Nieto’s administration has encouraged more inner city growth, as well as increased numbers of ‘vertical housing’ constructions, such as condominiums and other high-rise residential apartment buildings.

Uncontrolled urban growth has produced a whole set of new challenges that the Mexican government is trying to tackle. By 2010, approximately 78% of Mexico’s population was urban, and informal housing, often built in areas with no access to basic services, has become a significant challenge. In an attempt to counter the latter, two publically-backed housing agencies – Infonavit and FOVISSTE – have been tasked with providing financing for formal housing. Social housing projects are being fostered through a series of measures made explicit in Peña Nieto’s National Housing Policy.

This chapter investigates the current housing developments and financing options, such as social housing projects and residential condominiums, from the perspective of key industry leaders and real-estate consultants. Specific attention is dedicated to potential threats to this subsector’s growth, as well as innovative trends that are paving the way for change in residential building practices.


  • Construction trends (e.g. green construction)
  • Flagship projects (e.g. Garden Santa Fe, Plaza Carso)
  • Social/affordable housing
  • ¿Vertical cities?
  • Formal housing financing schemes