Mexico City Home Sales Fall as Prices Hit Double Digits

Mexico City had about 18,000 new homes available in 2Q26, while only 57 projects entered the market and roughly 720 remained active. This constrained supply helped push average prices up 10.8% to MX$80,922/m², even as sales fell 6.4%.

Mexico City’s residential market weakened in 2Q26 as home sales fell 6.4% year over year, even as average prices climbed 10.8% to MX$80,922/m². The divergence points to mounting affordability pressures, with limited new supply continuing to support prices despite softer demand.

According to Accumin Intelligence México’s second-quarter residential market analysis, approximately 2,668 new homes were sold in Mexico City during 2Q26, contributing to a total of 7,084 transactions across the Metropolitan Area of the Valley of Mexico. The figures represent a 6.4% year-over-year decline, marking the weakest quarterly sales performance since 2020.

The slowdown comes as elevated housing prices and constrained affordability continue to weigh on demand. Despite weaker sales, the average residential price in Mexico City reached MX$80,922 per square meter, an annual increase of 10.8%, reflecting the persistent imbalance between supply and demand.

Prices Rise Across All Residential Segments

Price growth was more pronounced within Mexico City than across the wider metropolitan area. In the capital, the average price increased 3.5% between the first and second quarters and 10.8% compared with the same period of 2025.

Every major housing category registered annual price growth. Prices in the mid-market segment increased 9.2%, the strongest rise among the categories reported by Accumin. Luxury housing prices advanced 7.5% to an average of MX$125,495/m². The residential-plus segment reached MX$93,174/m² after a 6.9% annual increase, while the residential segment rose 7.2% to MX$74,414/m². The figures show that price pressures are not limited to luxury neighborhoods but extend across a broad portion of the capital’s formal new-housing market. 

Accumin’s data suggest that lower sales have not yet translated into widespread price reductions. Limited land availability, elevated land costs, and lengthy development periods continue to restrict the production of new housing, particularly units targeting lower- and middle-income households.

These conditions are also pushing developers toward larger and mixed-use projects, which can distribute land and construction costs across residential, commercial, and service components.

Inventory Could Be Absorbed Within 20 Months

Mexico City currently has about 18,000 new homes available for sale. At the existing pace of transactions, Accumin estimates that this inventory could be absorbed in approximately 20 months. In some boroughs, the estimated absorption period is only 16 months.

The limited inventory reflects a sharp reduction in project development. Only 57 new residential projects entered the Mexico City market during 2Q26. Before the COVID-19 pandemic, between 115 and 120 projects were typically added each quarter, meaning the current rate of new development is roughly half its previous level.

The capital now has approximately 720 active residential projects, less than half the number recorded two years earlier. The reduction in both active developments and new project launches is limiting the market’s capacity to replace sold inventory, despite the decline in quarterly transactions.

At the current rate, the 18,000 available units represent fewer than seven quarters of sales based on the roughly 2,600 homes sold during 2Q26. This helps explain why developers have maintained pricing power even as demand has slowed.

Cuauhtemoc Leads Mexico City Sales

Market performance also varies significantly by borough. Cuauhtemoc remained Mexico City’s most active residential market during 2Q26, recording 886 housing sales. The borough alone accounted for roughly one-third of the approximately 2,600 units sold across the capital during the quarter.

Prices in Cuauhtemoc approached MX$100,000/m², supported by demand along established corridors including Paseo de la Reforma, Roma, Condesa, and Juarez. These areas continue to attract residential investment due to their central locations, employment concentration, transport connectivity and access to commercial and cultural services.

Benito Juarez, by contrast, continued losing momentum compared with previous years. Miguel Hidalgo maintained some of the highest residential prices in the city, particularly in Polanco and neighboring areas. The concentration of activity in a limited number of central corridors means that strong performance in areas such as Cuauhtemoc can support citywide average prices, even while other boroughs register weaker absorption.

The challenges facing homebuyers are increasingly mirrored in the rental market. As MBN previously reported, average monthly rents in Mexico City climbed 9.6% year over year to MX$21,921 in June 2026, highlighting how affordability pressures now affect both ownership and leasing markets. Rising rents have widened housing cost gaps across income groups as demand continues to outpace available supply.

The combination of higher purchase prices and rising rents illustrates a broader structural issue within the capital’s housing market. Limited residential construction, particularly in centrally located areas with strong demand, has reduced options for households seeking affordable housing while maintaining upward pressure on both property values and lease rates.