Mexico is undergoing a housing revolution similar to that which began in America some 50 years ago, according to John Lyons of the Wall Street Journal.
After being wiped out by the mid-1990s’ financial crisis, the Mexican mortgage market has improved over the past decade thanks to a relatively stable economy:
The Mexican government has also increased home lending. As a result, homes have become increasingly affordable for young Mexican couples of modest means, whether they be teachers, government workers or salesmen:
While this newfound home ownership may bolster the thin ranks of Mexico’s middle class, it is uncertain how far this revolution will spread. With about half of Mexico’s 105 million people in poverty and half the work force labouring off the books, access to home loans may be difficult, says Lyons.
Source: John Lyons, Revolution in Mexico: Affordable Housing, Wall Street Journal, December 15, 2004.
For text http://online.wsj.com/article/0,,SB110306435798800163-search,00.html
For more on International: Institutions and Growth http://www.ncpa.org/iss/int/
FMF Policy Bulletin/ 04 January 2005
