How Much Are Homes in Mexico? A Comprehensive Price Guide for Buyers

Dreaming of a place with warm weather, rich culture, and affordable living? Mexico offers all that and more, with homes cheaper than in many other countries. But how much are homes in Mexico exactly? The housing market shows big price differences across regions.

Over the past decade, home prices in Mexico have more than doubled. By late 2023, the house price index had increased by 146%, even by 40% after adjusting for inflation. Over the past decade, property prices in Mexico have more than doubled. By late 2023, the house price index had increased by 146%, even by 40% after adjusting for inflation.

These price differences and Mexico's real estate trends highlight the changing housing market. Let’s explore the prices across regions and what’s driving these shifts!

How Much Are Homes in Mexico?

Expectedly, property prices in Mexico vary by location. The average cost ranges from $50,000 to $1,000,000, which tends to be cheaper than the U.S., but prices have been rising as Mexico’s economy grows. That being said, now it's a good time to buy real estate in Mexico.

A basic home in Mexico costs about 1,800,000 to 2,160,000 MXN ($100,000–$120,000), ideal for first-time buyers or those on a budget.

Mid-range homes with more space and amenities cost 2,000,000 to 4,000,000 MXN ($116,000–$232,000).

Luxury homes start at 4,000,000 MXN ($232,000), with high-end properties exceeding 10,000,000 MXN ($580,000).

Building costs in Mexico vary by location and quality. As of January 2025, the average cost is 15,423 MXN per square meter. For a 100-square-meter home, this translates to approximately 1,542,300 MXN ($90,000–USD 100,000), depending on materials and labor. In comparison, new home construction in New Mexico costs $150–$200 per square foot, making building in Mexico significantly more affordable.

Lastly, buying a home in Mexico comes with extra costs, such as the following:

Closing costs: 5% to 10% of the purchase price, covering notary fees, registration, and other expenses.

Property taxes: Low, usually 0.25% to 0.5% of the home’s value, but varies by location.

Maintenance fees: Gated communities and condos charge monthly fees for upkeep and security property insurance in Mexico.

HOA fees: If in a gated community, fees can range from a few hundred to several thousand pesos per month.

Planning for these costs helps avoid surprises and ensures smooth sailing. Zisla can certainly help make the buying process easier!

Factors That Influence the Housing Market in Mexico

Several things affect the housing market in Mexico. The location makes a big difference. Beachfront cities like Cancun and Puerto Vallarta cost more than inland places like Guadalajara or Puebla. Size and type also play a role. Bigger homes with modern features cost more.

Market conditions shift prices based on demand and the economy. Construction quality matters too—newer homes built with strong materials tend to have higher price tags.

Location

Where a home sits affects how much it costs. Coastal cities like Cancun or Puerto Vallarta, known for tourism, have higher real estate prices because buying a beachfront property in Mexico is always a good idea.

Expats drive up prices in places like San Miguel de Allende and Playa del Carmen. Some beach towns, such as Huatulco, Puerto Escondido, Mazatlán, and Progreso, still offer affordable options.

Size and Type

Larger homes with more rooms cost more. A condo, townhouse, or vacation home in Mexico will each have a different price point. Luxury homes with swimming pools, big yards, and high-end finishes have higher price tags than smaller, simpler houses.

Construction Quality

Well-built homes with strong materials cost more. Newer houses made with modern techniques usually have higher price tags. Older homes or those with lower-quality materials might seem cheaper, but upkeep and repairs can add costs over time.

Can a Foreigner Buy a House in Mexico?

Yes, foreigners can buy a house in Mexico, but some rules depend on location. Americans can also own property in Mexico. Consider extra costs, for example:

• Closing costs: Closing costs for Mexico real estate make 5–10% of the house price.

• Annual property tax: Around 0.25-0.5% of the home’s value.

• Capital gains tax: Selling later might mean paying 25–35% of the profit.

• Legal fees: A lawyer helps avoid issues.

IMPORTANT NOTES:

• If the house sits far from the beach or border (more than 50 km from the coast or 100 km from an international border), ownership works like in other countries.

• If the house sits near the beach or border (within the restricted zone), a fideicomiso (bank trust) is required.

• Selling, renting, remodeling, or passing it down works like normal ownership. The trust lasts 50-100 years, depending on the bank, but renewal happens as needed.

• A Mexican corporation helps avoid the bank trust requirement if you're buying for business purposes.

Average Home Prices in Popular Expat Zones

If you're thinking about moving to Mexico or investing in property, locations like Huatulco, Puerto Escondido, Yucatán State, Mazatlán, Mexico City, and others listed below, provide affordability, lifestyle, and investment potential. Here's what to expect in Mexico's expat communities:

1. Huatulco

Huatulco features nine bays, over 30 pristine beaches, and a focus on sustainable development.

• Condos: Near the beach, prices average $286,000; ocean-view condos cost around $580,000, while beachfront condos average $693,000.

• Homes: Single-family ocean-view homes average $790,000, while those without a view cost about $567,500.

• Luxury Villas: High-end properties in gated communities or with beachfront access average $1.2 million.

2. Puerto Escondido

Puerto Escondido is one of the best places in Mexico for digital nomads, surfers, and expats seeking a relaxed beach lifestyle.

• Affordable Houses: Homes in the town center range from $100,000 to $250,000.

• Condos: No-view condos average $212,000, ocean-view condos $358,000, and beachfront condos $495,000.

• Homes: No-view homes average $489,323, ocean-view homes $828,000, and beachfront homes $1.2 million.

• Investment Potential: Property values continue climbing as demand rises.

3. Yucatán State

Merida, one of the safest Mexican cities, blends colonial architecture, vibrant culture, and modern living, while nearby Progreso provides beachfront opportunities.

• Colonial Homes in Merida: Restored homes range from $200,000 to several million USD.

• Suburban & New Developments: Modern homes in newer areas of the capital cost between $150,000 and $300,000.

• Progreso Beachfront: The Progreso real estate market has homes ranging from $290,000 to $460,000, providing seaside living near the city.

4. Puerto Vallarta

Life in Puerto Vallarta is vibrant with condos ranging from $200,000 to $500,000; homes with views exceed $560,000.

5. Playa del Carmen

Beach-proximity condos range from $250,000 to $700,000, while high-end properties exceed $1 million. Playa del Carmen is also one of the best places to retire in Mexico.

6. Cancun

Houses range from $130,000 to $350,000. Beachfront and gated communities like Puerto Cancun and Playa Mujeres cost a bit more, such as Asana Leaf. However, the hidden beaches of Cancun add privacy and beauty, making these homes worth the price.

Find Your Perfect Home in Mexico Today!

Planning and research can help avoid common mistakes when buying a property in Mexico. Here's a list of helpful tips to keep in mind:

• Work with a local real estate agent: A local agent knows the area well and can guide you through buying a home, whether it’s in the north, along the coast, or in a vibrant city. They help find the right property, handle negotiations, and ensure legal steps go smoothly.

• Hire a professional attorney: They will overview the job of the notary as the notary is a government official and is a neutral party. Your lawyer will make sure everything is done properly and will look out for your best interest.

• Plan for extra costs: Beyond the price of the home, budget for property taxes in Mexico, closing costs, and maintenance fees. Knowing these expenses ahead of time helps avoid surprises.

• Urban or rural? Property prices vary depending on location. Big cities tend to cost more, while smaller towns offer more affordable options. Choose based on budget and lifestyle.

• Understand social divisions: Different neighborhoods attract various social groups. Some areas appeal to wealthier families, while others offer more affordable choices. Research neighborhoods to find what fits best.

• Compare housing costs: Prices for homes differ across cities. Comparing costs and income requirements in various locations helps determine where a home fits within your budget.

Before buying a home, whether in person or online, plan carefully and stay informed. Make sure your choice fits your needs and budget.

Looking for the perfect home in Mexico? Contact us today!

FAQs

• Can you find cheap houses for sale in Mexico on the beach?

Yes, but it depends on the location. Popular tourist spots like Cancun or Puerto Vallarta have higher prices, but smaller towns and less developed areas along the coast offer cheaper options. Places like Progreso, Mazatlán, and parts of the Baja Peninsula have beachfront homes at lower prices. The further from major cities, the better the deals.

• Can a US citizen buy property in Mexico?

Yes! U.S. citizens can buy property in Mexico, but beachfront and border areas require a fideicomiso (bank trust). This trust allows full control over the property while a Mexican bank holds the title. If the home is outside the restricted zone, it can be purchased outright. Canadians can also own property in Mexico.