Authored by the expert who managed and guided the team behind the Mexico Property Pack
Everything you need to know before buying real estate is included in our Mexico Property Pack
If you're wondering whether January 2026 is the right time to buy property in Mexico, you're not alone.
In this blog post, we break down the current housing prices in Mexico and what the data actually tells us about the market right now.
We constantly update this article to reflect the latest numbers and trends, so you always get fresh insights.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Mexico.
So, is now a good time?
Rather yes, buying property in Mexico in January 2026 makes sense if you choose carefully and don't overstretch your budget.
The strongest signal is that real home prices in Mexico are still climbing (up over 50% since 2010 in inflation-adjusted terms), which tells us the market is not collapsing.
Another key signal is that mortgage rates remain high (around 11% to 12%), which means affordability is tight and buyers who wait for rate cuts could benefit.
Other signals include strong rental demand in major cities, nearshoring-driven job growth in industrial corridors, and no signs of serious banking stress that would trigger a crash.
The best strategy right now is to focus on well-located apartments or houses in proven neighborhoods like Polanco, Roma, Condesa in Mexico City, San Pedro in Monterrey, or Providencia in Guadalajara, and consider renting out for steady income while rates stay elevated.
This is not financial or investment advice, we don't know your personal situation, and you should always do your own research before making any property decision.
Is it smart to buy now in Mexico, or should I wait as of 2026?
Do real estate prices look too high in Mexico as of 2026?
As of early 2026, home prices in Mexico look stretched but not wildly overvalued, with the official SHF index showing around 8.7% annual growth and real (inflation-adjusted) prices sitting about 53% above their 2010 level.
One clear on-the-ground signal is that listings in condo-heavy areas like parts of Tulum or Playa del Carmen often sit for 3 to 6 months before selling, suggesting some price softness in oversupplied pockets.
Another indicator is that mortgage rates in Mexico remain near 11% to 12%, which limits buying power and means sellers in mid-range segments sometimes accept price cuts to close deals.
You can also read our latest update regarding the housing prices in Mexico.
Does a property price drop look likely in Mexico as of 2026?
As of early 2026, the likelihood of a broad property price crash in Mexico over the next 12 months is low, though flat or slightly softer prices in some overheated micro-markets are quite possible.
A plausible range for national price changes in Mexico over the next year would be somewhere between minus 3% (in weaker segments) and plus 7% (in high-demand corridors), with most areas landing somewhere in the middle.
The single most important factor that could push prices down in Mexico would be a sudden spike in mortgage delinquencies or a credit crunch, but banking regulators show no signs of systemic stress right now.
Given that Banco de Mexico has been gradually cutting rates and expects inflation to converge toward target through 2026, a credit shock looks unlikely in the near term.
Finally, please note that we cover the price trends for next year in our pack about the property market in Mexico.
Could property prices jump again in Mexico as of 2026?
As of early 2026, the likelihood of a renewed price surge in Mexico is medium, mostly concentrated in cities benefiting from nearshoring and job growth rather than a nationwide boom.
A plausible upside range for strong-performing areas in Mexico over the next 12 months would be 5% to 10%, especially in industrial corridor cities like Monterrey, Queretaro, Saltillo, and Tijuana.
The single biggest demand-side trigger that could drive prices higher in Mexico is further interest rate cuts by Banco de Mexico, which would make mortgages more affordable and unlock pent-up buyer demand.
Please also note that we regularly publish and update real estate price forecasts for Mexico here.
Are we in a buyer or a seller market in Mexico as of 2026?
As of early 2026, Mexico's housing market leans slightly more buyer-friendly than the peak frenzy years, but it's not a deep buyer's market because prices are still rising nationally.
While there's no single official "months of supply" figure for all of Mexico, the fact that major portals show over 1.3 million active listings suggests buyers have plenty of selection, especially for standard apartments and condos in most metros.
In many condo-heavy developments and oversupplied areas, we estimate that 15% to 25% of listings eventually see price reductions before selling, which means buyers in those segments have real negotiating room.
We have made this infographic to give you a quick and clear snapshot of the property market in Mexico. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Are homes overpriced, or fairly priced in Mexico as of 2026?
Are homes overpriced versus rents or versus incomes in Mexico as of 2026?
As of early 2026, homes in Mexico look stretched versus incomes in major urban hotspots like Mexico City, Monterrey, and Guadalajara, though they appear closer to fair value in many secondary cities where supply comes online more easily.
Price-to-rent ratios in prime neighborhoods of Mexico City often exceed 20 to 25 years of annual rent, which is above the 15 to 20 year range typically considered balanced and suggests buying is expensive compared to renting in those areas.
Price-to-income multiples in Mexico's most expensive neighborhoods can reach 10 to 15 times annual household income, well above the 3 to 5 times ratio that international benchmarks consider affordable.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Mexico.
Are home prices above the long-term average in Mexico as of 2026?
As of early 2026, home prices in Mexico are clearly above the long-term average, with the BIS real price index sitting at 152.6 (using 2010 as 100), meaning inflation-adjusted prices are more than 50% higher than 15 years ago.
Over the past 12 months, Mexico saw nominal home price growth of around 8% to 9%, which is faster than the pre-pandemic pace of roughly 5% to 6% annually.
In inflation-adjusted terms, Mexico's current real home prices are at or near their all-time highs, which means future gains will likely depend more on picking the right location and property type than riding a broad national wave.
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What local changes could move prices in Mexico as of 2026?
Are big infrastructure projects coming to Mexico as of 2026?
As of early 2026, the biggest price-moving infrastructure story in Mexico is not a single mega-project but rather the ongoing wave of nearshoring-related industrial development in corridors like Monterrey-Saltillo, Bajio (Queretaro, Guanajuato), and border cities like Tijuana, which is driving job growth and housing demand in those areas.
These industrial and logistics developments are already underway, with factories and distribution centers opening continuously, so the price impact is happening now rather than waiting on future approvals or construction timelines.
For the latest updates on the local projects, you can read our property market analysis about Mexico here.
Are zoning or building rules changing in Mexico as of 2026?
There is no single nationwide zoning reform happening in Mexico right now, but in Mexico City (the largest market), ongoing debates about density limits and permit processes in neighborhoods like Roma, Condesa, and Narvarte continue to shape where new supply can and cannot go.
As of early 2026, the net effect of zoning constraints in Mexico's major metros is to keep supply tight in the most desirable central neighborhoods, which supports prices in those areas but pushes demand to adjacent zones like Escandon, Del Valle, or Santa Maria la Ribera.
The areas most affected by zoning constraints in Mexico are walkable, central neighborhoods in Mexico City where permit battles are common, as well as beach-zone municipalities in places like Tulum where local rules around development have become more restrictive.
Are foreign-buyer or mortgage rules changing in Mexico as of 2026?
As of early 2026, foreign-buyer rules in Mexico remain stable, with no major changes expected, and the main rule to know is that foreigners buying within 50 km of coasts or 100 km of borders must use a bank trust (fideicomiso), which adds some transaction friction but does not ban ownership.
There are no imminent foreign-buyer taxes, bans, or quotas being seriously discussed at the federal level in Mexico, so this is not a factor likely to disrupt prices in 2026.
On the mortgage side, the most important "rule" is simply the cost of credit, and while Banco de Mexico has been gradually cutting rates, mortgage pricing in Mexico still hovers around 11% to 12%, meaning any further rate reductions in 2026 could meaningfully boost affordability and buyer demand.
You can also read our latest update about mortgage and interest rates in Mexico.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Mexico versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
Will it be easy to find tenants in Mexico as of 2026?
Is the renter pool growing faster than new supply in Mexico as of 2026?
As of early 2026, renter demand in Mexico's major metros is outpacing new rental supply in most high-demand neighborhoods, largely because high mortgage rates are pushing would-be buyers into renting and nearshoring is bringing workers to industrial corridor cities.
The best signal for renter demand growth in Mexico is internal migration toward job centers like Monterrey, Queretaro, Guadalajara, and Tijuana, where companies are hiring and workers need housing quickly.
On the supply side, formal new housing registrations tracked through RUV exist, but they often don't match the specific neighborhoods or unit types renters want most, creating persistent tightness in the best areas even when national numbers look adequate.
Are days-on-market for rentals falling in Mexico as of 2026?
As of early 2026, well-priced long-term rentals in top neighborhoods of Mexico City and Monterrey typically find tenants within 2 to 6 weeks, while overpriced units or those in less desirable locations can sit for 2 to 4 months or longer.
The gap between "best areas" and weaker areas in Mexico is significant: a properly priced two-bedroom in Roma Norte or San Pedro Garza Garcia will rent much faster than a similar unit in a peripheral subdivision or an oversupplied condo tower.
One common reason rentals move quickly in Mexico's prime neighborhoods is simply undersupply, as limited new construction in places like Condesa or Polanco keeps vacancy low and allows landlords to fill units fast.
Are vacancies dropping in the best areas of Mexico as of 2026?
As of early 2026, vacancy in Mexico's best-performing rental areas like Polanco, Roma Norte, Condesa, and Del Valle in Mexico City, San Pedro Garza Garcia in Monterrey, and Providencia in Guadalajara is low and either stable or dropping slightly.
In these prime neighborhoods, effective vacancy for quality units is estimated at under 5%, compared to 8% to 12% or higher in peripheral areas or oversupplied condo clusters.
One practical sign that the "best areas" are tightening first in Mexico is that landlords in places like Roma or San Pedro can now demand longer lease terms or higher deposits without losing tenants, something that wasn't always possible a few years ago.
By the way, we've written a blog article detailing what are the current rent levels in Mexico.
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An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Am I buying into a tightening market in Mexico as of 2026?
Is for-sale inventory shrinking in Mexico as of 2026?
As of early 2026, it's hard to say definitively whether for-sale inventory in Mexico is shrinking versus last year, because there's no single official nationwide count, but major portals still show over 1.3 million active listings, suggesting abundant selection in many segments.
Months-of-supply varies widely across Mexico: standardized condos in oversupplied developments may have 6 to 12 months of inventory (a buyer's market), while scarce assets like prime-location family houses in Roma, Condesa, or San Pedro often have under 3 months (a seller's market).
One reason inventory can feel tight in Mexico's best neighborhoods is that owners with low-rate mortgages or strong rental income see no reason to sell, preferring to hold and wait for better conditions.
Are homes selling faster in Mexico as of 2026?
As of early 2026, median time-to-sell for homes in Mexico varies a lot by segment, but properly priced properties in prime neighborhoods typically sell in 1 to 3 months, while overpriced or less desirable homes can take 3 to 6 months or longer.
Compared to last year, selling times in Mexico have not dramatically shortened because mortgage rates remain high, which limits the pool of financed buyers and keeps absorption steady rather than accelerating.
Are new listings slowing down in Mexico as of 2026?
As of early 2026, we're not confident in a precise year-over-year change for new listings across all of Mexico, but the general pattern suggests sellers are cautious, putting fewer homes on the market when they don't absolutely need to sell.
Seasonally, new listings in Mexico tend to pick up after the holiday season (February to April) and slow down in December, so current levels may simply reflect normal seasonal patterns rather than a structural shift.
The most plausible reason new listings are slower than you might expect in Mexico is that many owners don't want to sell into a high-rate environment where buyers have limited purchasing power, preferring to hold and collect rent instead.
Is new construction failing to keep up in Mexico as of 2026?
As of early 2026, new construction in Mexico is generally not keeping up with demand in the most desirable urban neighborhoods, though national totals can look fine because supply often gets built in peripheral areas or segments that don't match what buyers actually want.
Formal housing registrations tracked through RUV continue at a steady pace, but permits and completions in central, walkable areas of Mexico City, Monterrey, and Guadalajara remain constrained by land scarcity and local regulations.
The single biggest bottleneck limiting new construction in Mexico's prime areas is the combination of expensive land and lengthy permitting processes, which makes it hard for developers to add meaningful supply where demand is strongest.
We made this infographic to show you how property prices in Mexico compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
Will it be easy to sell later in Mexico as of 2026?
Is resale liquidity strong enough in Mexico as of 2026?
As of early 2026, resale liquidity in Mexico is generally strong in major metros and established resort markets, meaning a realistically priced home in a good location will find a buyer, though it may take a few months rather than a few weeks.
Median days-on-market for resale homes in Mexico's top neighborhoods runs about 30 to 90 days when priced correctly, which is within the "healthy liquidity" range where you can expect to sell without major difficulty.
The property characteristic that most improves resale liquidity in Mexico is location in a proven, high-demand neighborhood like Polanco, Roma, Condesa, Del Valle, or San Pedro, because these areas have deep buyer pools and consistent transaction activity.
Is selling time getting longer in Mexico as of 2026?
As of early 2026, selling time in Mexico is somewhat longer than during the easy-money years of 2020 to 2022, mainly because high mortgage rates have reduced buyer purchasing power and made the market more price-sensitive.
Current median days-on-market in Mexico ranges from about 30 days (for well-priced, well-located homes) to 120 days or more (for overpriced or harder-to-finance properties), with most listings landing somewhere in between.
One clear reason selling time can lengthen in Mexico is affordability pressure: when mortgage rates are around 11% to 12%, buyers can simply afford less, so sellers who don't adjust their price expectations end up waiting longer.
Is it realistic to exit with profit in Mexico as of 2026?
As of early 2026, the likelihood of selling with a profit in Mexico is medium to high if you buy smartly, hold for several years, and choose a location with proven demand, but quick flips are much riskier given high transaction costs and current price levels.
A realistic minimum holding period in Mexico to exit with profit is typically 5 to 7 years, which gives you time to absorb transaction costs and benefit from gradual appreciation or rental income along the way.
Total round-trip costs in Mexico (buying plus selling, including notary fees, taxes, and commissions) typically run 8% to 12% of the property value, which translates to roughly 150,000 to 250,000 Mexican pesos per million pesos of value, or about $8,000 to $15,000 USD (7,500 to 14,000 EUR) on a mid-range property.
The factor that most increases profit odds in Mexico is buying below market value in a high-demand neighborhood, because you start with built-in equity and benefit from the area's strong resale liquidity when it's time to sell.
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Mexico, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| SHF (Sociedad Hipotecaria Federal) | Mexico's federal mortgage finance institution and primary compiler of national housing price indicators. | We used SHF data as the official baseline for nationwide nominal price growth in mortgaged homes. We treated their Q2 2025 release as our starting point for understanding price momentum heading into 2026. |
| FRED (St. Louis Fed) / BIS Series | A respected public data portal with clearly documented inflation-adjusted housing price data from the BIS. | We used this to measure where Mexico's real home prices stand versus 2010 and recent quarters. We relied on the Q3 2025 observation as our "as of the first half of 2026" reality check. |
| Banco de Mexico (Banxico) | Mexico's central bank and the official source for interest rates and credit cost data. | We used Banxico's household mortgage cost tables to anchor affordability analysis. We also used their monetary policy statements to frame the likely direction of rates into 2026. |
| INEGI | Mexico's national statistics institute and official publisher of inflation and housing sector data. | We used INEGI to contextualize how much of home price growth is real versus just inflation. We also used their housing satellite account data to ground the market in the real economy. |
| CNBV | Mexico's banking regulator and the official source for system-level banking indicators. | We used CNBV data to check for signs of mortgage lending stress or credit risk. We cross-checked their statistics to verify the banking system isn't showing obvious warning signals. |
| Propiedades.com | A major national property portal with over 1.3 million active listings and transparent market reports. | We used their market studies as a private-sector pulse check for listing inventory and market behavior. We relied on their data to complement official indices that don't track things like days-on-market. |
| BBVA Research | A major bank research unit with consistent methodology and deep coverage of Mexico's housing sector. | We used their housing reports to triangulate credit volumes, construction activity, and affordability pressures. We also used their analysis to understand whether demand is credit-driven or income-driven. |
| AMPI | Mexico's main real estate professionals association with clearly described nationwide surveys. | We used their survey results to sanity-check whether market participants see tightening or softening on the ground. We relied on their data to add context about transaction dynamics. |
| OECD Housing Indicators | Widely used and methodologically transparent international framework for affordability comparisons. | We used the OECD's price-to-income and price-to-rent framework to structure our fair-value analysis. We applied their conceptual approach even when local data required estimation. |
| RUV (Registro Unico de Vivienda) | A core system used by Mexico's formal housing development ecosystem to register new housing processes. | We used RUV as a supply-side proxy to understand future housing delivery. We also used it to discuss new-build constraints versus demand in different regions. |
| SRE (Secretaria de Relaciones Exteriores) | The official authority explaining foreign ownership rules tied to Mexico's Constitution. | We used SRE documentation to explain what fideicomiso rules really mean for foreign buyers in coastal and border zones. We separated legal structure questions from price cycle risk. |
| CONDUSEF | Mexico's official consumer financial protection body with standardized mortgage comparisons. | We used their mortgage comparison reports to translate credit costs into consumer-friendly terms. We relied on their data to keep the analysis practical for non-professional buyers. |
| Reuters | A top-tier international wire service that directly reports central bank projections and decisions. | We used Reuters reporting to cross-check Banxico's macro outlook on growth, inflation, and rate direction. We relied on their coverage to avoid depending on market speculation. |
| CONAVI / SNIIV | Mexico's federal housing commission and the government's official housing indicators system. | We used SNIIV as the official map for supply and demand indicators. We relied on their data to triangulate market tightness beyond what private listing portals show. |
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Mexico. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.