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"The idea is to now turn the focus to the poorest 20%, 30% of
Mexico's population," Albert Saiz, a professor at the
Massachusetts Institute of Technology (MIT) who led the study,
told Reuters ahead of its publication.
To reach the poorest Mexicans, urban housing must become three
to four times denser than current levels to keep up with surging
demand, Saiz and his fellow MIT researchers argue in the study.
This would require a multi-sector initiative tackling supply,
including government subsidies for new developments in
coordination with the private sector, Sainz said.
"The private sector is needed in reaching that poorest 20%,"
Saiz said, urging cooperation with local governments and
developers, non-profit groups or even the use of communal land
plots known as ejidos to increase housing access.
Local governments also have a proactive role to play by planning
for growth and expanding utilities, the researchers said. In
Mexico City, water access has led to increasing tensions between
long-established communities and new developments.
In Mexico, where access to credit is low and many workers are
outside the formal economy, financing for housing remains low
and many turn to self-constructed builds.
About six in 10 new builds in Mexico are built by owners, the
study, backed by Colombian startup La Haus, found. Government
data on housing is scarce.
Mexico's public housing policies, which have targeted the middle
class through underwriting loans, can go further in extending
housing access by shifting or increasing direct subsidies to the
lowest income bracket, Sainz argues.
"This is a historic moment for Mexico," Saiz said, pointing to
increasing demand for housing amid population growth and a
projected boom in nearshoring, or firms moving operations closer
to home.
"If there's political stability and a little bit of consensus
among parties, it can be done."
(Reporting by Kylie Madry; Editing by Brendan O'Boyle, Robert
Birsel)
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