Mexican President Claudia Sheinbaum has launched a comprehensive housing initiative to address the country’s housing deficit by building a million homes and offering zero-interest mortgages.
The program, aimed at supporting vulnerable groups, focuses on female-led households, young people, Indigenous communities and senior citizens. The announcement is a fulfillment of Sheinbaum’s campaign promise to create affordable housing and promote equitable urban development.
“The focus of this program is to provide affordable housing to those in greatest need, especially young Mexicans,” Sheinbaum stated, contrasting her approach with previous right-wing administrations that prioritized profit-driven projects over public needs.
Introduced a month into her presidency, Sheinbaum’s Housing and Regularization Program involves a partnership between the federal government and national housing institutions. The National Workers’ Housing Fund Institute (INFONAVIT) will build 500,000 homes, while an additional 500,000 will be constructed by the National Housing Commission (CONAVI) for those ineligibles for traditional public housing schemes.
A key component of the initiative is a zero-interest mortgage scheme, offering low-income households a path to homeownership with favorable terms. According to Rodrigo Chávez, Director of CONAVI, qualified beneficiaries will have access to 30-year, interest-free mortgages, specifically designed to ease the financial burden for Mexico’s underserved citizens.
The Welfare Financial Institution (FINABIEN), a newly established government-backed lender, will provide additional subsidized financing for those not eligible for standard public housing programs.
Sheinbaum, a member of the left-wing Morena party, underscored that the program’s primary goal is to guarantee the right to shelter, contrasting it with previous right-wing governments that treated housing construction as a real estate business.
“Unlike back then, when it was essentially a program for real estate companies, a real estate development program, (…) this program is completely different.”
This initiative marks a departure from past housing projects, which often placed homes in remote areas far from employment and public services. Instead, it focuses on creating accessible, functional housing near residents’ workplaces, public services, and transportation.
“It’s not about building houses just for the sake of building them; that’s the big difference between the neoliberal period and the Fourth Transformation,” she explained.
The program includes a substantial financial commitment, with the Mexican government allocating approximately MX$600 billion ($30.8 billion USD) to support housing development, especially in rural and underserved areas.
Mexico’s Minister of Agrarian, Territorial, and Urban Development, Edna Vega, noted that the program is expected to drive significant job growth, with an estimated 6.1 million direct and 9.2 million indirect jobs generated through construction and infrastructure efforts.
Sheinbaum’s housing strategy also comes at a time of shifting U.S.-Mexico relations. Tensions over issues like migration and trade are likely to increase with Donald Trump‘s election. Local papers and analysts have pointed out that Sheinbaum, who spoke with Trump on Thursday, may take a firmer stance on national issues that impact Mexico’s autonomy in handling domestic concerns, such as housing and economic inequality.
Last modified: November 12, 2024
