FOVISSSTE Returns to Homebuilding After 34 Years In Puebla

FOVISSSTE has begun construction of 512 homes in Puebla, marking its return as a direct housing developer and advancing its 100,000-home national target.

After more than three decades focused primarily on mortgage financing, Mexico’s housing fund for public-sector workers (FOVISSSTE) has resumed direct housing construction, launching its first new development in Puebla as part of the federal government’s Housing for Well-Being strategy. The project marks a significant shift in the institution’s role, aiming to expand the supply of affordable housing for state workers while contributing to the government’s broader goal of delivering 100,000 homes through FOVISSSTE during the current administration.

President Claudia Sheinbaum led the groundbreaking ceremony for the Housing Complex Carmen Serdán in Puebla, describing the initiative as the first FOVISSSTE-built housing project in more than 34 years. The development represents the revival of an institutional model in which the housing fund not only finances mortgages but also directly develops residential projects for eligible public employees.

The first phase of the Puebla project will include 512 housing units, backed by an investment exceeding MX$300 million (US$17.3 million). The homes will be designed for state workers with lower incomes and will be integrated into neighborhoods with access to transportation, healthcare, education, and commercial services, aligning with the federal government’s objective of promoting more sustainable urban development.

Housing Strategy Shifts Beyond Mortgage Lending

Rather than relying exclusively on private developers, the federal government is seeking a more active role in increasing housing supply through public institutions such as FOVISSSTE, the National Workers’ Housing Fund Institute (INFONAVIT) and the National Housing Commission (CONAVI). The strategy forms part of the Vivienda para el Bienestar program, which seeks to expand access to affordable housing for lower-income households and public-sector employees.

According to Sheinbaum, FOVISSSTE plans to construct 100,000 homes during the administration, supported by an investment of at least MX$60 billion (US$3.46 billion). The program is intended to complement traditional mortgage products by increasing the availability of newly built homes for workers who often face limited housing options despite having access to credit.

Martí Batres, Director, ISSSTE, says the initiative restores one of FOVISSSTE’s original functions, noting that the institution had not directly developed housing projects for more than three decades. He argued that the new model seeks to strengthen the right to adequate housing while reducing dependence on private market supply.  

The Puebla project is expected to serve as a blueprint for future developments nationwide, says Jabnely Maldonado, Executive Director, FOVISSSTE. She says that the institution intends to offer homes through financing schemes designed specifically for public-sector workers, with affordable monthly payments and greater certainty for borrowers.  

Puebla Development Begins National Rollout

The Carmen Serdán housing complex is expected to become the first of several developments planned under the renewed construction strategy. State and federal officials said the project will incorporate public services and urban infrastructure while supporting local economic activity through construction jobs and procurement.

In September 2025, Sheinbaum said the broader housing strategy for Puebla included about 10,000 homes from FOVISSSTE, in addition to 60,000 units planned through INFONAVIT and 20,000 through the National Housing Commission.

MBN reported in November 2025 that the fund’s first construction projects would be located in Puebla and Chiapas. At the time, the federal government was expanding its housing strategy and assigning production targets among FOVISSSTE, INFONAVIT, and other public housing institutions.

The development also complements other federal housing initiatives launched this year under Housing for Well-Being including CONAVI’s expansion of affordable housing programs and new registration phases for low-income households.