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The Housing Transition in Mexico

Dramatic reform of the housing finance system is transforming the way housing is produced and acquired in Mexican cities. More housing is now built on speculation by private companies and purchased with mortgages than through the incremental building process that traditionally housed most of the country. A majority of housing finance, however, is provided through government provident funds and, as such, only available to individuals with a formal, salaried job. This article describes the housing transition and assesses the impact of restrictions in the finance system on housing outcomes using logistic regression and nonparametric matching procedures. Regional development impacts are also explored in the context of national goals.