Housing GDP grew 2.3% in 2021: INEGI

The Gross Domestic Product (GDP) of housing increased 2.3% in 2021, revealed the National Institute of Statistics and Geography (INEGI).

According to the Mexico Satellite Housing Account (CSVM) 2021, the GDP of the sector was equivalent to a million 388 thousand 691 million pesosthat is, 5.7% of the national GDP.

This figure represented an increase from 23% during the past year, while the total of the economy increased 4.6%. From 2009 to 2021, housing registered growth annual average of 0.6%.

The sector generated 2 million 366 thousand 767 jobs, 5.8% of all jobs in Mexico and 3.9% more than in 2020. Of these, 87.5% were in construction, 9.4% in real estate and rental services, and 1.5% in financial and insurance services.

By sources of information, the generation of goods and services for the market represented 55% of total housing GDP. Activities related to non-market production and production for own final use contributed 0.9 and 44.1%, respectively.

When dividing the sector, the construction value associated with the construction, extension and residential improvement contributed 65.8% of housing GDP, while services real estate and of rental of movable and intangible assets represented 28.6%

The financial and insurance services linked to this sector were responsible for 4.9% and the remaining 0.7% was distributed to other sources.

The activity that contributed the most was self-production, which participated with 41.1%. This had an annual increase of 31.2%. In turn, the production of economic units ranked second in contribution, with 21%, followed by rental, with 26.5%, and financing for the purchase or improvement of housing, with 4.7%.

For their part, the real estate services had an annual increase of 20%, while the value of paid housing rental services effectively rose 2%. In contrast, construction and specialized works decreased 28.5% in relation to 2020.

The total supply of goods and services associated with housing totaled 2 million 21 thousand 634 million pesos, of which 99.6% was national production. These were acquired mainly as gross fixed investment (70.3%), as final household consumption (27.3%), as intermediate demand (2.3%) and as government consumption (0.1%).