Mexico's lowest-income households are spending as much as one out of every three pesos in their budget on housing, according to a report by xataka.com.mx.
Data from INEGI's National Survey of Household Income and Expenditures (ENIGH) shows that rental costs have become one of the most significant financial pressures on family incomes across the country.
Households in the lowest income decile report spending an average of 32.59% of their income solely on rent. This figure stands in stark contrast to the national average, which sits at 13.98%.
In the first decile, which represents the nation's poorest families, the burden of rent is more than double the national average. Conversely, in the tenth decile, the percentage allocated to housing is just 11.46%.
Rising costs outpace inflation
While the average quarterly current income for Mexican households reached 77,864 pesos, this growth has not translated into improved well-being due to the rising cost of living, according to 2024 ENIGH data.
In 2024, average quarterly family spending reached 47,674 pesos. Within this budget, housing, energy, and maintenance account for approximately 15% of total expenditures, making it the third largest expense category, trailing only food and transportation.
The report highlights that rent increases have evolved faster than inflation. There are documented cases of annual rent hikes exceeding 10%, while inflation rates have remained near 4%.
This situation is widening the country's inequality gap. While households in the lowest decile report quarterly incomes of 16,795 pesos, those in the highest decile earn as much as 236,095 pesos.
Financial specialists warn that more than 30% of income should not be allocated to housing to avoid compromising other essential expenses. However, the economic reality in Mexico shows that millions of households—particularly young people and vulnerable sectors—are already exceeding that critical threshold.
