Mexico City home prices and mortgage affordability, Digi Mart USA News (Mexico City, Mexico): Owning a home has become an economic challenge for thousands of families in Mexico City, where the average price of properties bought with a mortgage reaches 4.28 million pesos, more than double the national average. The housing market is growing considerably faster than the incomes of the population.
According to BBVA Research, between 2016 and 2025 housing prices in Mexico rose 108.5%, while household incomes grew by only 25%. That gap has deteriorated buyers’ purchasing power and made it harder for families to acquire their first property.
The Sociedad Hipotecaria Federal (SHF) reported a national increase of 7.9% in the prices of mortgage-financed homes during the first half of 2026, while in the Valle de México area the increase was 4.6%.
The purchase price is not the only expense buyers face. Down payments, notary fees, appraisals, taxes and deed-registration procedures can add a considerable amount before buyers receive their keys.
Data released by the developer QuieroCasa indicate that closing costs in the capital typically represent between 4% and 9% of a property’s value. For example, to buy an apartment worth 2.3 million pesos, the buyer could face the following initial outlays, presented as an illustrative example.
Amounts may vary depending on the credit, the property and applicable costs, and do not include other possible charges.
The National Commission for the Protection and Defense of Users of Financial Services (Condusef) recommends that monthly mortgage payments not exceed 30% to 40% of monthly income, in order to avoid compromising family financial stability.
Faced with rising prices, buyers have begun to favor smaller properties located in areas with good connectivity, transportation and services. According to commercial information from QuieroCasa, 74% of the apartments the company sold during 2026 measure 80 square meters or less, while 41% are units smaller than 60 square meters.
The company also reported that 35% of its transactions this year involved buyers aged 25 to 38, a segment that faces the challenge of saving for a down payment and sustaining mortgage payments.
By borough, the developer concentrates its operations in Cuauhtémoc, with 30%; Iztacalco, with 22%; and Venustiano Carranza, with 19%. These figures reflect only the company’s sales and projects and do not necessarily represent the overall behavior of the capital’s real estate market.
Given the difficulties of buying a home, real estate specialists note that year-end extraordinary income can help build the savings needed for a purchase. Juan Carlos Arce, marketing director at QuieroCasa, explained that resources such as year-end bonuses, aguinaldos and savings funds allow buyers to increase their initial contribution and reduce the amount of financing requested.
“For those seeking to buy their first home, one of the main challenges is raising the down payment without compromising their financial stability. The end of the year can represent an opportunity to take advantage of additional income, such as bonuses, aguinaldos or savings funds, and put it toward buying a property,” he said.
Arce said a larger initial contribution can reduce the required credit and, depending on the buyer’s conditions, lower future monthly payments. However, taking advantage of real estate promotions does not guarantee that a property is more affordable.
Buyers should compare interest rates, total annual cost, terms, fees and actual repayment capacity before signing a mortgage.
Although commercial incentives may reduce some upfront expenses, the underlying problem remains the growing gap between property costs and household incomes. Data from SHF and BBVA Research show that housing price increases have far outpaced income growth, limiting the ability to buy a property with mortgage financing.
In this context, the availability of homes priced in line with wages, financing conditions and well-located housing supply remain central factors in expanding access to housing in Mexico City.
