The monthly financial cost for a home in the USA increased 116% in the last 12 months. Which has generated mobilization of the population towards places with more affordable homes. This increase in housing financing has generated internal migration in the states and to countries with lower real estate costs.
Mortgage rates increase
While people are moving for a variety of reasons, housing-related moves have increased even more. With mortgage rates close to 7%, many people are looking for more affordable homes in less dense areas and other countries. More often in Mexico.
Housing affordability is affected by mortgage lending rates on the rise. However, this has also generated a migration trend from urban to rural areas and other countries.
Mobility towards more affordable areas
There is a trend of mobility from economic centers in the northwest of the country to Florida and Texas. However, there is also a trend of mobility to several Mexican pieces of paradise.
You may be asking yourself why Mexico. Well, it is easy. There is flexibility in new ways of working along with lower living costs. Evidently, this has led to these moves to much more affordable cities.
People started moving from New York and Massachusetts to other states. Among the favorite states are Florida and Texas, as the latter has become the number one destination. Since about 70% of those interested in acquiring a mortgage loan in the United States seek to invest in this region.
And therefore, when they find out the cost of living and the difference in the housing prices in Mexico, many choose Mexico to downsize without losing benefits.
Affordable homes in Paradise
First, they can go back and forth whenever they want, as there are flights from Mexico to many of the major airports in the US.
And second, because they have thousands of options. They can choose a beachfront house in Cabo or a house in a colonial city like Merida. Or they can choose between a ocean front home in Oaxaca or a beach near the desert in Rocky Point.
In general, housing is 50% less expensive in rural areas, and even less in other countries. So the trend is for this migration to continue in the coming months and before the actions of the FED.
Contact one of our experts in Top Mexico Real Estate to find out more about affordable homes in Mexico and remember…We make it happen.