Mexico’s Vinte – Affordable and Sustainable Housing for BOP Customers





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Background Note

From the late 1990s, there was heavy growth in the Mexican housing market primarily due to a push from the Mexican government to develop the market, advances in the structure and operation of Mexican mortgage markets, operational improvement in housing funds, increase in lending by the private sector to meet housing needs, stable macroeconomic conditions, rise in economic growth, and higher standards of living.

To increase the access of the lower classes to affordable housing, the Mexican government made substantial efforts to provide housing loans to workers making between two and four times the Mexican minimum wage.

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However, the demand for affordable housing in Mexico (especially in large Mexican cities) far outstripped availability. Moreover, 50% of Mexicans lived in poverty, unable to afford formal housing units. In addition, the new housing development suffered from being environmentally unsustainable. (See Exhibit I for More Information on Affordable and Sustainable Housing in Mexico).....

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