Yucatán’s Housing Boom Strains Infrastructure and Services

Mérida, Yucatán — As hundreds of families seek to settle in one of Mexico’s safest cities, Yucatán’s housing industry is experiencing a surge in growth. By March 31, 2025, approximately 1,750 properties monitored by the National Chamber of the Housing Development and Promotion Industry (Canadevi) had been sold, generating an economic impact exceeding 2,208 million pesos.

Competitive Prices Amid Rising Demand

Mauricio Morales Greene, president of Canadevi Yucatán, described the current market as “encouraging.” In an interview, he noted that the state maintains competitive prices compared to the national average, with a median housing cost of 15,520 pesos per square meter (m²), below the national average of 17,997 pesos. This places Yucatán 25th among Mexico’s 32 states.

Between July 2024 and January 2025, housing prices in the state rose by 5.7%, reaching 27,502 pesos per m². Morales Greene attributed this increase to “natural market adjustments.”

Expansion and Urban Reconfiguration

Mérida remains the epicenter of housing development, with significant activity in the north, south, Ciudad Caucel, and the western regions, where urban reconfiguration is underway. Nearby municipalities such as Kanasín, Umán, Progreso, Valladolid, Tizimín, and Hunucmá also show sustained growth due to available land, connectivity, and housing demand.

Emerging interest is also noted in Tekax, Motul, and Espita, recently designated as “Pueblos Mágicos” (Magical Towns), though urbanization there remains slow. Meanwhile, Ucú has emerged as a strategic area driven by private developers.

Infrastructure Challenges

Despite the boom, infrastructure has not kept pace. Carlos Estrella Escalante, president of the College of Civil Engineers of Yucatán, warned that modernization efforts lag behind development. “The city must continue growing, but with vision. A stagnant city loses vitality, and unplanned growth has consequences,” he said.

Key challenges include:

• Traffic congestion: Urban roads were not designed for current traffic volumes, leading to long queues during peak hours.
• Aging water systems: Much of the potable water network relies on infrastructure installed over 40 years ago, lacking adequate maintenance or investment.
• Rising construction costs: Mérida has transitioned from an affordable city to one of the country’s most expensive due to material costs and a shortage of skilled labor, from technicians to service-sector employees.

Shifting Housing Models

Developers are increasingly turning to condominium projects to offer more compact housing, as regulations require single-family lots of at least 160 m² with eight meters of frontage. This shift, driven by market conditions, places additional demands on municipal services like waste collection, drainage, lighting, and security.

Call for Sustainable Planning

The rapid expansion underscores the need for modern infrastructure and public policies prioritizing urban sustainability. While growth is undeniable, planning remains insufficient to address the strain on resources and services.

The housing boom in Yucatán reflects both opportunity and urgency, as stakeholders grapple with balancing growth against the pressing need for infrastructure upgrades and long-term urban planning.