The cost of real estate in the Cancun area continues to rise. The average cost of a home in Cancun specifically currently sits around 5 million MXN. At the current exchange rate that’s a bit over 250,000 USD. An apartment in a mid level complex in Cancun is going for just over 5 million pesos on average.
Finding a beachfront home in Cancun in that price range is going to be a tough ask. An apartment with a beachfront in the Hotel Zone could go for over a million dollars.
While the prices within the Puerto Cancun complex can vary, certain properties are going for around 350 thousand. A penthouse within the same area could go for around 800,000.
What drives down the average price of homes in the area is the fact that you can find homes near the Cancun center for around 50 thousand dollars.
Even though the average price tag on these properties is high, it’s still way lower than the prices that are seen in American beach cities. For example, according to Zillow, the average cost for a property in Miami Florida sits around 477 thousand dollars. That’s contemplating all of the homes in the area, not just beachfront homes or apartments that could go way over that price. These asking prices are potentially driving foreign investments to the Cancun area.
Who Is Buying Homes In The Cancun Area?
It may come as a surprise to many people that it’s actually local millennials that lead the way in buying intentions. 31% of the sales of homes in the area was taken up by people in this age group. Followed by members of Gen X, and Gen Z respectively. For the most part though, it’s not high end homes that are experiencing booming sales. The growth in the real estate sector throughout the Cancun area seems to have mid level housing, and low income housing at its forefront.
Why Cancun Millennials Can Afford To Buy Homes
There’s actually a good reason for why Millenials are sweeping up homes in the Cancun area. Millennials are entering their 30s and 40s respectively. Depending on what years within the generation they were born in. This means that many of them have now spent upwards of 10 years in the workforce. Mexican workers that have formal employment are required to be registered in the federal housing fund for workers by their employer.
That means part of their check goes to a fund that they have to forcefully cash in on. After a set number of years they move to ask for a line of credit. These credits that the federal housing institute issues from that fund to people in the program, are usually only large enough for workers to afford medium to low level housing. Not surprisingly, these types of homes are the ones in higher demand overall.
According to reports the demand for homes in the region went up by 89% compared to the demand that was seen in 2020. It’s reported that around 87% of those looking for a home want to buy. The credit situation may be a big reason why. Developers seem to favor these types of homes.
Over the last year more than 4% of the total number of homes built in the entire country were built in and around the Cancun area. With that type of demand for homes it’s only natural that developers will continue to erect homes and apartment buildings in this sunnier part of Mexico.
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