Determinants of housing expenditure in Mexico

Abstract

Few studies estimate housing demand for developing countries. We contribute to the literature by estimating housing demand in Mexico, and analysing its main determinants. An advantage of this study is the use of market-based data of actual housing transactions. Our results show a strong positive influence of permanent and temporary income on housing demand.

Acknowledgements

We would like to thank SHF personnel for all their support. The views expressed in this article are those of the authors and do not necessarily reflect the views of SHF nor Banco de México.