Mexico requires to invest almost 4% of its gross domestic product every year to build 800,000 housing units annually over the coming two decades to keep up with the growing demand, according to a study.

The Massachusetts Institute of Technology (MIT) associate professor Albert Saiz, who is leading the study, told Reuters: “That comes out to 3.87% of the (country’s) GDP. That’s what we need in Mexico. It’s ambitious, but feasible.”

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Colombian startup La Hausis is financing the study, which is in its first phase.

La Hausis is a residential marketplace to purchase and sell mainly new developments.

Demand for houses in the country is growing, while the number of people living together is reducing, Saiz noted.

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Saiz said: “In 1990, there were five people per home in Mexico. By 2020, there were only 3.6 per home.”

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Furthermore, in the coming years, several homes will also need to be replaced.

According to Mexico’s national statistics agency, about 57% of homes were constructed by their owners and several of them do not meet building codes.

Saiz said: “We have to think constructively about how to entice these owners as well.”

According to Saiz, the next phase of the study would analyse the political conditions and the solutions to make construction feasible.

The third phase would look at the execution of any strategy.

According to Saiz, the ability to solve housing problems in the country rests with local municipalities rather than federal governments.

He added: “We’re not doing it fast enough.”
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Image: Demand for houses in the country is growing. Credit: Harry Strauss from Pixabay.