Housing Shifts, Industrial Trends: The Week in Infrastructure

This week in infrastructure, as home loan approvals dip, land financing surges, signaling changing housing market priorities. Furthermore, the government ramps up its social housing program to deliver 1.2 million new homes nationwide. 

Mexico’s industrial sector shows mixed signals with modest monthly growth but a slight annual decline, even as construction costs across Latin America drop, boosting the region’s appeal for investors. In logistics, the Cuautitlan–Tultitlan–Tepotzotlan corridor cements its status as Mexico City’s premier industrial hub amid record-low vacancies and rising rents.

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Land Financing Surges as Home Loans Decline in Mexico

As Mexico’s housing market contracts and mortgage rates stay high, demand for land acquisition is surging. INFONAVIT reported a 46.8% rise in loans for land purchases between January and April 2025, reflecting a shift toward long-term homeownership planning amid stagnant new housing supply and rising property prices. Meanwhile, traditional mortgage originations declined, highlighting changing financing priorities.

Mexico Expands Social Housing Plan to 1.2 Million New Homes

The Mexican government has expanded its Housing for Well-being Program (PVB) to deliver 1.2 million new homes nationwide. With over 138,000 homes already under construction or in early stages across 30 states, the program also supports 1.55 million home improvements and 1 million property titles. 

Mexico’s Industrial Activity Up 0.6% Monthly, Down 0.4% Annually

Mexico’s industrial activity grew 0.6% month-over-month in May 2025, driven by a strong 2.8% rise in construction and modest gains in manufacturing and utilities. However, year-over-year industrial output declined 0.4%, weighed down by significant drops in mining and utilities, while manufacturing was the only sector with positive annual growth.

Construction Costs Drop in Latin America, Boosting Appeal

The GCMI 2025 report by Turner & Townsend shows Latin America gaining investor appeal as construction costs drop and political stability improves. Mexico City and Monterrey stand out amid nearshoring trends, offering strategic, cost-effective opportunities versus pricier US cities.

CTT Corridor: Mexico City’s Top Logistics Hub With Strong Growth

CBRE México’s latest analysis highlights the Cuautitlan–Tultitlan–Tepotzotlan (CTT) corridor as the dominant industrial and logistics hub in Mexico City, holding 76% of the metro area’s industrial inventory. The corridor is seeing record-low vacancy rates, a strong construction pipeline focused on versatile spaces, and rising rents driven by high demand from logistics (65%) and manufacturing (35%).

Franke Group Opens US$82 Million Plant in San Luis Potosi

The Franke Group inaugurated its new US$82 million production facility in San Luis Potosi, enhancing local manufacturing for residential kitchens and foodservice solutions across the Americas. The 31,000m² plant features advanced technologies, sustainability initiatives like solar power and water recycling, and plans to expand its workforce from 200 to 500 employees.

2026 World Cup Could Be Most Polluting Ever, Report Warns

The 2026 FIFA World Cup, hosted by the United States, Canada, and Mexico, is projected to be the most carbon-intensive tournament ever, with emissions nearly doubling previous editions due to increased air travel and expanded venues. Key stadiums, including Monterrey’s Estadio BBVA, face significant climate risks, while host cities like Mexico City invest in sustainable transport. However, environmental and social concerns persist, with infrastructure projects threatening local ecosystems and water resources near stadiums.