How much does a house cost in Mexico in 2024?

According to a federal agency, buying a home in Mexico cost an average of 9.5% more in the first half of 2024 than in the same period last year.

Data from the Federal Mortgage Society (SHF) shows that the average price of a home in Mexico between January and June was 1.724 million pesos ($92,500 at today’s exchange rate).

Table showing the average price increases for residential properties in each of the 32 states of Mexico from the first half of 2023 to the first half of 2024. The table also shows the national average of 9.6%. At the top of the list is Baja California Sur with a variation of 14.7%, while Mexico City has the lowest variation at 5.8%. — The complete list of year-on-year fluctuations in average home costs between H1 2023 and H1 2024, by state. Although Mexico City was the most expensive place to buy a home in 2024, the annual increase from 2023 to 2024 was the smallest. (SHF)

The average price includes both apartment and house prices and is calculated from data on homes purchased with a mortgage.

The year-on-year increase in house prices was almost double the prevailing annual inflation rate, which was 4.98% at the end of June. It is the second-highest increase in house prices in the first half of the year since 2015. The highest increase was recorded in 2023, when the annual increase was 11.6%.

Rising housing costs: where and why

SHF data shows that Mexico City is the most expensive place to buy a home, while Durango is the cheapest. (See below)

Baja California Sur, which includes the popular resort town of Los Cabos, saw the largest annual increase in property prices at 14.7%.

The 9.5 percent increase in real estate prices across Mexico in the first half of the year coincided with a 0.4 percent decline in new construction, according to official data. One of the reasons for the year-on-year decline in new construction was an increase in construction costs.

A total of 60,451 apartments were built between January and June 2024.

Construction workers assemble the metal support rods on a building, an image illustrating foreign investment in Mexico — New home construction fell nationwide in the first half of 2024, but demand remained stable compared to 2023, putting pressure on prices. In Baja California Sur, a 34.4% decline in the number of new homes built in the first half of 2024 was accompanied by a 14.4% increase in the average home price – the highest increase of any Mexican state. (Moisés Pablo Nava/Cuartoscuro)

Analysts at BBVA México said consistent demand was a factor in the year-on-year increase in property prices.

Jorge Combe, general director of real estate company DD360, told the newspaper El Economista that margins for property developers had fallen due to a number of factors, including inflation in building materials and high interest rates.

Real estate prices in Central Mexico

The average price of a home in Mexico City was 3.933 million pesos ($211,000) in the first half of the year, up 5.8% from the same period in 2023.

Mexico City is by far the most expensive place in the country to buy a home, with average prices much higher than in Baja California Sur – the second most expensive residential real estate market in the country – and Querétaro, the third most expensive market.

Prices for houses and apartments in the capital vary considerably depending on location. It goes without saying that prices in desirable, upscale and well-located neighborhoods such as Polanco and Condesa are much higher than in less developed neighborhoods on the outskirts of the city.

In the neighboring state of México, which includes many municipalities that make up the greater Mexico City metropolitan area, the average home price is less than half that in the capital. Prices in the state of México rose 8% annually to 1.742 million pesos (US$93,400), just above the national average.

Buildings in the Condesa district of Mexico City — The average price of a home in Mexico City in the first half of the year was 3.933 million pesos (US$211,000). (Mario Jasso/Cuartoscuro)

Below are the average real estate prices for other states in Central Mexico during the first half of the year (from most expensive to cheapest).

Morelos: 2.058 million pesos (US$110,300), an annual increase of 9.6%.
Puebla: 1.688 million pesos (US$90,500), an annual increase of 11.3%.
Hidalgo: 1.205 million pesos (US$64,600), an annual increase of 8.4%.
Tlaxcala: 1.076 million pesos (US$57,700), an annual increase of 6.5%.

How much does a house cost in the Bajío?

Mexico’s Bajío region – an industrial center – includes large cities such as León and San Luis Potosí, as well as popular tourist destinations such as San Miguel de Allende and Guanajuato. Average real estate prices in these places are considerably higher than in rural parts of the region.

Aerial view of the colorful historic buildings of the city of Guanajuato — The Bajio region of Mexico includes a mix of industrial and picturesque historic towns – like the city of Guanajuato here. (Richie Chan/Shutterstock)

Below are listed (from most expensive to cheapest) the average property prices in the first half of the year for states located entirely or partially in the Bajío region.

Querétaro: 2.199 million pesos (US$113,600), an annual increase of 10.5%.
Jalisco: 1.861 million pesos (US$99,700), an annual increase of 9.2%.
San Luis Potosí: 1.513 million pesos (US$81,100), an annual increase of 10.6%
Guanajuato: 1.379 million pesos (US$73,900), an annual increase of 10.6%.
Aguascalientes: 1.344 million pesos (US$72,000), an annual increase of 9.2%.
Zacatecas: 1.134 million pesos (US$60,800), an annual increase of 6.7%.

Housing costs in southeastern Mexico

Tourist hotspots such as Cancún and Playa del Carmen, as well as the growing city of Mérida, the capital of Yucatán, are among the places in southeastern Mexico where real estate prices are above average. The newly built Mayan Railway runs through this region, which is known for white-sand beaches, pretty colonial towns, impressive archaeological sites and the ancient Mayan culture.

Below are the average property prices in the first half of the year in the southeastern states of Mexico (from most expensive to cheapest).

Yucatán: 2.026 million pesos (108,700 US dollars), a annual increase of 9.6%.
Quintana Roo: 1.743 million pesos (US$93,500), an annual increase of 12.7%.
Campeche: 1.455 million pesos (US$78,100), an annual increase of 10.7%.
Tabasco: 1.408 million pesos (75,500 US dollars), a annual increase of 10.6%.
Veracruz: 1.243 million pesos (66,700 US dollars), a annual increase of 8.2%.

The real estate market in northern Mexico

Large cities such as Monterrey and Ciudad Juárez are located in the north of Mexico, where there are also a large number of export-oriented factories that serve as Maquiladoras or makeupThe region also includes the picturesque Baja California peninsula, which is divided into two separate states.

Below are the average property prices in the northern states of Mexico in the first half of the year (from most expensive to cheapest).

Baja California Sur: 2.260 million pesos (US$121,200), an annual increase of 14.7%.
Baja California: 1.916 million pesos (US$102,700), an annual increase of 12.6%.
Sinaloa: 1.815 million pesos (US$97,300), an annual increase of 9.2%.
Nuevo León: 1.751 million pesos (US$93,900), an annual increase of 11.5%.
Sonora: 1.585 million pesos (US$85,000), an annual increase of 12.1%.
Chihuahua: 1.418 million pesos (US$76,000), an annual increase of 10.6%.
Coahuila: 1.273 million pesos (US$68,200), an annual increase of 8.8%.
Tamaulipas: 1.027 million pesos (US$55,000), an annual increase of 8.8%.
Durango: 978,774 pesos (US$52,500), an annual increase of 10.3%.

Real estate prices in the southern states

The poorest states in Mexico are in the south. The region also has popular tourist destinations such as the city of Oaxaca, Acapulco and San Cristóbal de las Casas.

Empty street with picturesque historic houses on both sides in San Cristobal de las Casas, Chiapas, with a single motorcycle in the distance — Although Chiapas ranked 7th among Mexican states nationwide in the average fluctuation in home prices between 2023 and 2024, it was tied with the state of Oaxaca as the state with the highest increase in the southern states of Mexico, with an increase of 11.5%. (Rubi Rodriguez Martinez/Shutterstock)

Below are the average property prices in the southern states of Mexico in the first half of the year (from most expensive to cheapest).

Oaxaca: 1.618 million pesos (US$86,700), an annual increase of 11.5%.
Michoacán: 1.578 million pesos (US$84,600), an annual increase of 6.4%.
Guerrero: 1.518 million pesos (US$81,400), an annual increase of 7.3%.
Chiapas: 1.339 million pesos (US$71,800), an annual increase of 11.5%.

How much does a house cost in Western Mexico?

Below are the average property prices in the first half of the year for two states in western Mexico (from most expensive to cheapest).

Nayarit: 1.757 million pesos (US$94,200), an annual increase of 11.7%.
Colima: 1.349 million pesos (US$72,300), an annual increase of 10.6%.

With reports from El Economista

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