Title page
Contents
Abstract 4
Résumé 4
Introduction 7
The challenges of the Mexican housing market 8
Housing quality is low 8
House prices are high and housing costs are excessive for low-income households 11
The rental market is underdeveloped 12
Low-income households have limited access to housing credit 13
Land for urban development is insufficient to face the high demand 14
Many houses are badly located because of widespread urban sprawl 15
Mexico's new housing policy 18
Promoting good quality and affordable housing 21
Refocusing public spending on housing 21
Improving access to credit for low-income households and informal workers 23
Expanding the rental market 24
Reinforcing formalisation and avoiding the formation of informal settlements 31
Addressing urban sprawl 32
Enhancing coordination on housing and urban policy 32
Addressing urban sprawl and vacant housing 34
Improving urban mobility 39
Enhancing the public transport system 39
Re-focussing federal funding for mobility projects 40
Better coordinating mobility and urban development planning 41
References 44
Table 1. Most land in Mexico is used for low-density residential purposes 16
Table 2. Recommendations 43
Figure 1. More than half of private houses in the poorest regions are substandard 9
Figure 2. Housing overcrowding is prevalent 9
Figure 3. A large share of the housing stock needs home improvement 10
Figure 4. Access to an adequate house is associated with location, income and education 10
Figure 5. Real housing prices in Mexico increased but less than in some regional peers 11
Figure 6. Housing costs for low-income households are very high in Mexico 12
Figure 7. House prices have increased faster than rents 12
Figure 8. Most Mexicans are homeowners 13
Figure 9. Low-income households have limited access to housing credit 14
Figure 10. The demand for dwellings is high, especially in urban areas 14
Figure 11. Land for increasing housing supply is scarce 15
Figure 12. Many Mexicans are unsatisfied with the time-distance to access urban services 16
Figure 13. Many urban areas still grow faster than population 17
Figure 14. Most houses are single-family 17
Figure 15. Residential investment is high in Mexico 18
Figure 16. A stylised map of the housing policy framework 19
Figure 17. More than 60% of housing is self-build in Mexico 21
Figure 18. Public spending on housing support is low in Mexico 22
Figure 19. Mexico applies a preferential tax treatment to debt-financed homeownership 25
Figure 20. The average height of buildings is low 35
Figure 21. Transport is expensive in Mexico 40
Figure 22. The use of private cars is low in Medellín 42
Boxes
Box 1. Main socioeconomic factors associated with access to adequate housing in Mexico 10
Box 2. Housing policy in Mexico: governance and main programs 19
Box 3. The main housing subsidies programs 22
Box 4. Promoting affordable housing via the private sector: the case of Italy and France 26
Box 5. Promoting affordable housing for low-income households in the United States 28
Box 6. Funding strategies for social rental housing 29
Box 7. Social Housing Bond Financing 30
Box 8. Increasing the supply of land for affordable housing the case of Bogotá 31
Box 9. The Urban Improvement Program 35
Box 10. Densification and reurbanisation strategies: the case of Paris and Mexico City 36
Box 11. The tax on vacant housing in France 38
Box 12. Using land banks to address vacant housing in the United States 38
Box 13. Funding for sustainable urban mobility in Mexico: PROTRAM 40
Box 14. Reforming mobility for a more inclusive and sustainable city: the case of Medellín 42