Will properties get more expensive in Monterrey in 2026?

Authored by the expert who managed and guided the team behind the Mexico Property Pack

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Who is the author of this content?

THE LATINVESTOR

A team specialized in real estate investing in LATAM countries

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Monterrey. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At The LatinVestor, we explore the Mexican real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Monterrey, Mexico City, and Guadalajara. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What are the current property prices in Monterrey and how much have they increased?

Monterrey's residential property market has experienced dramatic price appreciation over the past five years.

As of September 2025, apartments in Monterrey average MXN 73,975 per square meter (approximately US$3,651), representing a significant 9.9% increase from 2024 when prices averaged between MXN 67,300-70,819 per square meter. This upward trajectory becomes even more striking when compared to historical data.

Looking at the five-year comparison, apartment prices have surged more than 30% since 2020, when the historical median was around MXN 54,900-57,100 per square meter. Houses show a similar pattern, currently averaging MXN 27,874-28,101 per square meter in 2025, up from roughly MXN 23,000 per square meter in 2020.

The consistent year-over-year growth demonstrates strong market fundamentals driving Monterrey's real estate sector.

It's something we develop in our Mexico property pack.

How much new housing is being built and planned for Monterrey?

Monterrey's housing supply has struggled to keep pace with rapidly growing demand over the past three years.

While specific unit counts for recent construction are limited in official data, new housing development has significantly lagged behind population growth and employment expansion. Major residential projects have been announced but supply constraints remain a persistent challenge across the metropolitan area.

For 2026, several significant developments are in the pipeline, including the ongoing Esfera City Center project with 981 units. More importantly, planned construction includes over 20 new supplier-related residential developments directly tied to Tesla's expansion and other manufacturing investments in the region.

However, comprehensive numbers for total planned units in 2026 have not yet been published by municipal authorities, indicating that supply planning may still be catching up to the rapid pace of economic growth and foreign investment influx.

The gap between housing demand and available supply continues to be a key factor supporting upward price pressure in Monterrey's residential market.

What is Monterrey's population growth and how many new residents are expected?

Monterrey maintains robust population growth that directly fuels housing demand across the metropolitan area.

The city's annual population growth rate stands at 1.48%, significantly outpacing Mexico's national average. As of 2025, Monterrey's population has reached 5,272,360 residents, making it one of Mexico's largest and fastest-growing metropolitan areas.

Projections for 2026 indicate an additional 78,000 new residents will arrive in the metropolitan area, bringing the total population to approximately 5,350,000. This translates to roughly 6,500 new residents per month throughout 2026.

The population influx stems from multiple factors including job creation in manufacturing and technology sectors, higher wage opportunities compared to other Mexican cities, and the city's strategic position for nearshoring operations.

With each new resident requiring housing, this steady population growth creates consistent upward pressure on both rental and purchase markets in Monterrey.

How many jobs have been created and in which industries?

Monterrey's job market has experienced exceptional growth over the past five years, particularly in manufacturing and technology sectors.

While precise total job creation numbers for 2019-2024 aren't available, manufacturing remains Monterrey's economic backbone, employing over 120,000 workers in IMMEX-certified facilities alone, with 15,000 positions specifically within the city proper. The sector continues to show high job growth driven by automotive and auto-parts manufacturing.

Technology has emerged as a major growth sector, with significant expansion in AI, IoT, and cybersecurity companies. The hospitality industry has also responded to increased business demand, with 13 new hotels opening by 2025 to accommodate the growing number of business travelers and professionals.

The automotive sector particularly benefits from Tesla's expansion and related supplier networks, while the technology boom is fueled by nearshoring trends as companies relocate operations closer to US markets.

This diversified job creation across high-paying industries supports higher household incomes and stronger housing demand throughout the metropolitan area.

What are current mortgage rates and how have they changed?

Mexico's mortgage interest rates have fluctuated significantly over the past three years, impacting affordability for potential homebuyers in Monterrey.

As of September 2025, the current mortgage interest rate stands at 9.36% according to the Bank of Mexico's minimum rate. This represents a notable shift from the rate environment of recent years.

In 2022, mortgage rates averaged around 10.21%-11.32%, marking a period of higher borrowing costs. The trajectory shows rates initially declined from pandemic highs near 12%, reaching attractive lows of approximately 7% in late 2021, before climbing again as Banxico tightened monetary policy and global interest rates rose.

The current 9.36% rate represents a middle ground between the recent highs and lows, though it remains elevated compared to international standards.

For Monterrey's property market, these rates influence affordability calculations, though the city's high household incomes help offset the impact of higher borrowing costs compared to other Mexican metropolitan areas.

How much have household incomes grown in Monterrey?

Monterrey leads Mexico in household income growth, providing strong support for continued property price appreciation.

As of Q2 2025, Monterrey reports the highest average quarterly household income in Mexico at US$6,230, translating to approximately $24,920 annually. This represents an impressive 31% increase compared to roughly $19,000 per year five years ago.

The income growth significantly outpaces national averages and reflects the concentration of high-paying manufacturing and technology jobs in the metropolitan area. Monterrey's strategic position as Mexico's nearshoring capital has attracted premium employers offering competitive salaries to secure skilled workers.

Projected growth by 2026 indicates household incomes will continue climbing in line with strong wage growth and continued investment inflows from foreign companies establishing operations in the region.

This robust income growth provides the economic foundation for residents to afford higher property prices and supports both the rental and purchase markets throughout Monterrey.

How do Monterrey's rental yields compare to other major Mexican cities?

Monterrey offers the highest rental yields among Mexico's major metropolitan areas, making it particularly attractive for property investors.

City	Rental Yield	Market Position
Monterrey	6.43%	Highest in Mexico
Mexico City	6.24%	Second highest
Guadalajara	5.75%	Third highest
Tijuana	5.20%	Fourth highest
Cancun	4.90%	Tourism-dependent

The 6.43% rental yield in Monterrey reflects robust rental demand combined with still competitive property purchase prices relative to income levels. This yield advantage stems from strong job growth attracting professionals who need rental housing, combined with limited new supply keeping rents elevated.

Compared to Mexico City's 6.24% yield, Monterrey's slight advantage comes with lower absolute property prices, making entry costs more accessible for investors. Guadalajara's 5.75% yield reflects a more mature market with higher property values relative to rental income potential.

It's something we develop in our Mexico property pack.

How many foreign companies have invested in Monterrey recently?

Monterrey has emerged as Mexico's premier destination for foreign direct investment, particularly driven by nearshoring trends.

Over the past three years since October 2021, approximately 87 foreign companies have established operations in Nuevo León, with the majority concentrated in the Monterrey metropolitan area. This makes Monterrey the national leader in attracting foreign business investment.

The influx stems primarily from nearshoring trends as companies seek to relocate manufacturing and operations closer to US markets while maintaining cost advantages. Industries include automotive suppliers, technology companies, and manufacturing firms across various sectors.

Looking toward 2026, dozens more companies are confirmed or anticipated, particularly suppliers tied to Tesla's expansion and Asian manufacturing firms establishing North American operations. Monterrey is expected to maintain its position as Mexico's top recipient of foreign direct investment.

This corporate expansion directly drives housing demand as companies relocate employees and hire local talent, creating sustained upward pressure on both rental and purchase markets throughout the metropolitan area.

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.

What is the current vacancy rate for residential properties?

Monterrey's residential vacancy rate has declined significantly and remains at historically low levels as of 2025.

While exact residential vacancy percentages are not published in official statistics, market reports consistently indicate that vacancy rates are low and have decreased compared to five years ago. The tight market conditions reflect high demand driven by population growth and limited new supply.

The nearshoring boom and foreign investment influx have created particularly strong demand for housing, with many arriving professionals and workers competing for available rental and purchase options. Industrial and office vacancy rates are also at record lows, indicating broad-based real estate demand across all sectors.

Compared to 2020, when economic uncertainty created higher vacancy rates, the current market shows significantly tighter conditions with faster absorption of new units and increased competition among tenants and buyers.

Low vacancy rates support both higher rents and property values, as limited availability gives landlords and sellers pricing power in negotiations with prospective tenants and buyers.

How much have construction costs increased in Monterrey?

Construction costs in Monterrey have risen sharply due to nearshoring demand and material price inflation.

While specific percentage increases for 2022-2025 aren't precisely documented, costs for cement, steel, and labor have risen substantially amid the nearshoring boom and high construction demand. Construction inflation remains in double digits across the metropolitan area.

The cost increases stem from multiple factors including increased demand for construction materials, labor shortages as workers are absorbed by expanding manufacturing facilities, and supply chain pressures affecting material availability and pricing.

The forecast through 2026 indicates that high growth in construction costs will likely persist due to infrastructure bottlenecks and continued investment flowing into the region. New industrial facilities, residential developments, and infrastructure projects all compete for the same pool of materials and skilled labor.

Rising construction costs create a floor for new property prices, as developers must pass increased expenses onto buyers, supporting continued appreciation in existing property values throughout Monterrey.

What percentage of properties are bought with cash versus mortgages?

Monterrey's property purchase patterns likely follow Mexico's traditional preference for cash transactions over mortgage financing.

While specific percentages for Monterrey aren't explicitly documented, more than half of residential transactions in Mexico are typically made with cash rather than mortgage financing. This pattern reflects cultural preferences, stricter mortgage qualification standards, and higher closing costs associated with financed purchases.

Given Monterrey's higher household incomes compared to other Mexican cities, the cash purchase percentage may be even higher than the national average, as more residents have accumulated sufficient savings for property down payments or outright purchases.

The preference for cash transactions helps insulate Monterrey's market from mortgage rate fluctuations to some degree, though financed purchases still play an important role for first-time buyers and larger property investments.

High cash purchase rates also indicate strong underlying demand from financially stable buyers, supporting market stability even during periods of economic uncertainty or interest rate volatility.

What infrastructure projects are planned for Monterrey before 2026?

Monterrey has dozens of major infrastructure projects scheduled for completion before 2026 that will significantly impact housing demand.

1. **Industrial Parks and Manufacturing Facilities**: Multiple new industrial parks are under development to accommodate Tesla suppliers and other foreign manufacturers2. **Highway and Transportation Upgrades**: Major logistics and highway improvements throughout the metropolitan area to support increased freight and commuter traffic3. **Tesla-Related Infrastructure**: Specialized facilities and supplier plants directly connected to Tesla's expansion in the region4. **Utilities and Communications**: Power grid expansions and telecommunications infrastructure to support growing industrial and residential demand5. **Airport and Logistics Enhancements**: Improvements to cargo and passenger facilities to handle increased business travel and freight volumes

These infrastructure investments are concentrated in corridors that will experience the highest housing demand, particularly areas connected to new manufacturing facilities and improved highway access.

The expected impact on housing demand is substantial, as improved infrastructure makes previously less accessible areas more attractive for residential development while supporting continued economic growth that draws new residents to the metropolitan area.

It's something we develop in our Mexico property pack.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. Global Property Guide - Mexico Price History
2. The LatinVestor - Monterrey Price Forecasts
3. Properstar - Monterrey House Prices
4. The LatinVestor - Monterrey Real Estate Market
5. The LatinVestor - Monterrey Real Estate Trends
6. Invest Monterrey - Investment Report
7. World Population Review - Monterrey
8. MacroTrends - Monterrey Population
9. Tecma - Manufacturing in Monterrey
10. CEIC Data - Mexico Mortgage Rates