State in top five for rising housing costs

The state of Baja California was set in fifth placenationwide in terms of high housing costs, a report says.

The report released by the National Institute of Housing Funds, or Infonavit in Spanish, indicates the average cost of a home in Baja California has reached 1.7 million pesos, or about $88,841 USD.

That cost was 900,000 pesos in 2019, the report says, which by today’s conversion rate is about $47.034 USD.

Baja California Sur, Nayarit, Quintana Roo and Sinaloa are above Baja California in terms of average housing costs, the report says.

According to the report, 65% of residents own a home, including 80% of senior adults 65 and over.

While housing prices climbed 17.7% in the last couple years, salaries increased 14.7%. Such a gap has made it more difficult for local residents to purchase a house.

Less than a fifth of adults 34 and younger own a home, the report says. At the same time, a third of those adults rent their homes.

The National Housing Financing Survey shows rent costs increased 14.4% in the last two years.

A little over two-fifths of survey respondents said having no access to credit loans forbids them from purchasing a house.

Close to 30% said renting makes it easier to move to another home or city.

Based on the Unique Housing Registration, La Crónica newspaper reported that housing construction fell 51% last year.

Economist Roberto Valero told the newspaper raising costs of homes has been caused by inflation which, combined with average salary decline, has made it harder to purchase a home for residents.

In some cases homes have surpassed the two million pesos threshold (over $104,500 USD), Valero said.