Workers’ Housing Construction on The Rise
The National institute of statistics revealed that Southern Baja is the state with the largest number of new homes built for workers and business people. During the past 10 years, 21.1 percent of the population built or acquired a new home, more than Quintana Roo (16.5%) and Mexico City (3.4%). There are 30,000 federal credits available through Mexico’s housing fund (Infonavit) but people are not using them due to the high cost of new homes and the Infonavit’s high interest rates, 10.45 percent.
New home builders follow the bare minimum construction and amenities guidelines required by the government lending programs (Infonavit, etc).
They are selling at many times the actual cost of construction. A very small house on a tiny lot is priced at the square foot/meter cost of a luxury home in a gated community, and financed at high interest.
The purchaser has NO chance of ever reselling the home, as there will obviously be thousands of new choices for new buyers, so these are houses destined to eventually become rentals, and run down, as new families occupying them grow out of them.
This in turn leads to run down neighborhoods and lower and lower values.
buy one only if you want to live there forever or walk away in ten years.