It should come as no surprise that the foundational real estate motto “Location, location, location” is just as valid in Mexico as anywhere else.

And the locations of the highest housing prices are Mexico City, Baja California Sur and Querétaro. 

So says a survey of records compiled by the Federal Mortgage Society (SHF), a state-run development bank created in 2001 to boost the housing market.

It also confirmed that popular tourist hubs like Cancún, Los Cabos and Playa del Carmen tend to be more expensive due to high demand.

In a survey, the newspaper El Economista found that the average appraised value of a home in Mexico was 1.86 million pesos (US $104,323), whereas the average price of a house in the capital was more than double that at nearly 4 million pesos (US $222,088).

In Baja California Sur, the average hovered just above 2.5 million pesos (US $144,911) and in Querétaro it exceeded 2.3 million pesos (US $130,077).

The states of Yucatán and Nayarit — both featuring desirable beach locations — were also well above the average, with the former coming in at nearly 2.26 million pesos (US $126,000) and the latter just above 2.2 million pesos (US $124,339).

More moderate homes, with prices hovering just above 1 million pesos (US $56,000), can be found in the northern states of Tamaulipas and Durango, as well as to the east of the capital in the states of Tlaxcala and Veracruz (under US $72,000).

The Global Property Guide reported last month that “sales prices in the Mexican housing market exhibit a resilient but moderating growth trend,” attributing the affordability to a slowing economy and a gradually improving supply outlook.

El Economista found that 21 states registered increases above the average appraised value of a home in 2025. The Caribbean state of Quintana Roo showed the largest cumulative annual increase (14.3%), followed by Baja California Sur (12.9%) and Nayarit (12.2%). 

Conversely, the most modest increases were those recorded in Durango (4.7%), Mexico City (4.7%) and México state (5.2%).

With regard to metropolitan areas, Guadalajara showed the biggest increase (11.3%), with Tijuana (10.6%) and León (10.1%) also surpassing double digits, with Monterrey (9.4%), Puebla-Tlaxcala (8.7%) and Querétaro (7.2%) rounding out the top five.

With reports from El Economista, Global Property Guide and Remitly