According to the World Bank, half of Mexico’s population lacked access to affordable formal housing in 2017, and 46% of the population lives below the poverty line. There have been significant increases in supply over the past few decades, as government initiatives have mobilized bullions of dollars to boost housing availability and partner with developers and financial groups. Though these initiatives have increased housing supply, they have been criticized for inefficiency, poor execution, and lack of strategy, and perceived corruption.
In response to these critiques, Mexican President Andrés Manuel López Obrador announced reforms to the state-owned National Worker’s Housing Fund Initiative, which is one of the largest mortgage lenders in Latin America. Through the Shared Responsibility program, lower-income workers will be supported in paying off mortgages and attaining housing deeds. Additional reforms include increased transparency and improved efficiency and location of affordable units.
Source:
Oxford Business Group. (2020) Emerging Markets Strive to Solve Housing Deficits amid Rising Urbanisation. OBG.