From the late 1990s through the 2010s, Mexico pursued an ambitious expansion of housing finance and large-scale homebuilding. Millions of homes were constructed, and more households gained access to mortgages. On paper, this appeared to be a major step towards wider home ownership. In practice, however, Mexico’s housing landscape revealed a more complicated story.

Many new developments were built on the distant edges of cities, where land was cheaper. Yet residents often found themselves far from employment, public transport, schools and essential services. Consequently, the price of a house did not reflect the full cost of living there. Long journeys, limited infrastructure and rising household expenses made some supposedly affordable homes difficult to sustain.

Housing, Debt and Distance

For many families, mortgage debt added another layer of pressure. Some struggled to keep up with repayments on homes that did not provide reasonable access to daily opportunities. Meanwhile, certain developments became partly vacant or abandoned. The result was a striking paradox: Mexico had built housing at scale, yet many people still lacked access to homes that were affordable, connected and suitable for everyday life.

The experience also challenges simple distinctions between formal and informal housing. A formally financed and constructed development may still lack adequate services or opportunities. In response, residents often adapt their homes, create informal businesses and organise locally to meet needs that the original development did not address.

Lessons from Mexico’s Housing Landscape

In the third episode of Flywheel Economics’ affordable housing mini-series, Richard Ough and Favour Ogbadu speak with housing policy scholar Dr Alejandra Reyes about how this legacy emerged. Together, they examine the policies and institutions behind the housing expansion, what it achieved, where opportunities were missed and what other countries can learn.

Mexico’s experience shows that affordable housing cannot be measured by the number of units built alone. Location, transport, employment, infrastructure, finance and community life all shape whether a house can become a sustainable home.

Listen to the full episode to explore Mexico’s housing landscape and the choices that could create a more accessible, equitable and responsive housing system. Learn more and follow the mini-series and leave your questions on Instagram, LinkedIn and X (formerly twitter).