Rising Housing Prices in Mexico: A Closer Look at the Trends

Overview of Housing Prices

In the first semester of 2026, the housing market in Mexico has shown significant trends, with Mexico City, Baja California Sur, and Querétaro maintaining their positions as the regions with the highest average housing prices. According to the Federal Mortgage Society (SHF), Mexico City continues to lead with an astonishing average price of 4,285,135 pesos, which highlights a substantial gap compared to other states.

"The capital of the country has one of the widest price disparities in the nation, with over 1.6 million pesos separating it from the second-highest region."

Baja California Sur follows closely with an average housing price of 2,615,393 pesos, while Querétaro ranks third with an average of 2,381,522 pesos. This data indicates a competitive real estate market, particularly in these three regions, which are becoming increasingly attractive for both investors and homebuyers.

National Housing Market Trends

On a national scale, the average housing price reached 1,960,032 pesos, with 11 states surpassing this average. Following Mexico City, Baja California Sur, and Querétaro, other states such as Baja California, Nayarit, Morelos, State of Mexico, Jalisco, Nuevo León, Yucatán, and Oaxaca also reported average prices exceeding 2 million pesos.

"The rising prices are a reflection of the growing demand for housing in these regions, driven by various factors including economic growth and urban development."

Conversely, only five states recorded average prices below 1.4 million pesos. Tamaulipas holds the title for the lowest average housing price in the country at 1,147,405 pesos, followed by Tlaxcala, Durango, Zacatecas, and Hidalgo. This stark contrast in housing prices across the country underscores the regional disparities in the real estate market.

Price Variations and Economic Factors

The report also highlighted that while Mexico City reported the highest average price, it experienced the most moderate price increase at just 3.9%. In contrast, Tamaulipas, despite having the lowest average price, saw the most significant annual increase of 11.8%. This suggests that while some areas are becoming more expensive, others are catching up at a faster rate.

"The average increase in housing prices across the nation was 7.9% in the first half of the year, a slight moderation compared to the 8.6% increase observed in the same period last year."

The SHF attributes these price trends to various economic factors, including inflation, which was measured at 3.4% according to the National Consumer Price Index (INPC). Additionally, the average mortgage rate reached 11.42% in the second quarter of the year, further impacting the affordability of housing.

As the housing market continues to evolve, it remains crucial for potential buyers and investors to stay informed about these trends and the economic factors influencing them. The ongoing fluctuations in housing prices reflect broader economic conditions and consumer demand, making it an essential area to watch in the coming months.