Supply-demand squeeze could push Mexico home prices up 8% by the end of 2026

Home prices in Mexico could increase by as much as 7% to 8% by the end of 2026, according to Fitch Ratings’ most recent Global Housing and Mortgage Outlook (GHMO) 2026, driven by a persistent imbalance between limited housing supply and resilient demand. 

The GHMO cited high construction costs as restricting the development of new projects. Meanwhile, mortgage rates remain at historically high levels, restricting borrowers’ access to credit.  

According to the Federal Mortgage Society, the national housing price index increased by 8.7% in the first quarter of 2026 and 7.3% in the second quarter (compared to the same periods of last year), with cumulative growth for the first half of the year coming in at 7.9%. This remains lower than the historical highs of 10.4% and 10.06% recorded in 2022 and 2023, respectively.

In the first half of the year, single-family homes appreciated by 8.4%, while the combined price increase of condominiums and apartments was 7.4%. 

Public or subsidized housing increased in value by 10% and middle-income housing appreciated by 6.7%. 

During this period, the national average home value was 1,960,032 pesos (US $114,709), with 75% of homes valued below 2,226,101 pesos ($130,289).

By metropolitan area, Guadalajara experienced the highest housing price increase, at 11%, followed by Monterrey, 8.3%, and Puebla-Tlaxcala, 8.5%.

Mexico City's Doctores neighborhood
The combined price increase of condominiums and apartments nationwide was 7.4%. (Photo: Vivanuncios)

By state, Tamaulipas experienced the greatest increase, at 11.8%, followed by Quintana Roo at 11.5% and Jalisco at 11.2%. 

CDMX rental prices

The Mexico City government announced plans earlier in the year to prohibit rent increases beyond the previous year’s inflation rate, as well as expand the social housing stock.  

Average rent in the capital has increased by 9.6% year-on-year, over three times the current inflation rate. The highest rents are concentrated in the boroughs of Cuauhtémoc and Miguel Hidalgo, and the neighbourhoods of Hipódromo Condesa, Juárez and San Rafael. 

Improvements made in the city for the hosting of the 2026 FIFA World Cup have driven up prices in some areas. 

The average cost of a two-bedroom, 65-square-meter apartment was 21,921 pesos ($1,283) per month, equivalent to almost 70 days of minimum wage, while a three-bedroom, 100-square-meter apartment stood at 30,618 pesos ($1,792), or more than 97 days, according to data from the Inmuebles24 real estate listings platform.  

With reports from La Jornada and Informador

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