What is the 2025 INFONAVIT reform about? Here's how.

AUTHOR: ARQ. Santiago Vejar

Architect specializing in urban planning and urban planning. Writer and founder of ARQritic and Taller de Vivienda Evolutiva.

As is well known, access to decent housing is a right guaranteed to the Mexican people by the Mexican Constitution, but for millions of workers in Mexico, it remains an elusive dream, and the National Workers' Housing Fund Institute (INFONAVIT)  is at the heart of this problem. That's why, in this analysis, we'll explain the challenges facing housing in Mexico and the reforms proposed for 2025. We'll begin with the final straw that brought INFONAVIT into  the public eye: the controversy caused by corruption within the institution.

CORRUPTION IN INFONAVIT

INFONAVIT was founded in April 1972 as a result of its own law ,  conceived as a pillar to guarantee access to housing.

It began operations as a construction company and, from 1992 to the present, has consolidated its position as a financial institution offering loans to workers. However, unfortunately, it has not been able to escape being a rife arena for corruption. Cases such as the fraudulent successive home sales , where a single property was sold up to four times in one year , have exposed networks of complicity within the organization. Notaries, law firms, and employees of the institution itself participated in these schemes that robbed thousands of their savings.

The figures are alarming, as summarized in the EL ECONOMISTA publication , " more than 12,000 fraudulent loans for 1,400 homes and an embezzlement exceeding 1.2 billion pesos ." Although measures have been taken to punish those responsible, this case underscores the urgent need to strengthen transparency and oversight mechanisms within the institution.

ACCESS TO HOUSING IN MEXICO, THE MOST DIFFICULT CHALLENGE

Despite efforts, access to housing remains a monumental challenge . Millions of workers, especially those in the informal economy (which, according to STATISTA, represents 25% of Mexico's GDP) , are excluded from INFONAVIT 's credit system .

Thus, job insecurity, coupled with the growing phenomenon of gentrification, real estate speculation, and the "airbnb-ization"  of urban spaces, have driven up housing costs, making it nearly impossible to find affordable options in many areas of the country. States with high marginalization, such as Campeche and Guerrero , barely register any construction of social housing, leaving the most vulnerable sectors even further behind.

THE REFORM OF 2025

I AMLO already , announced in its package of reforms presented on February 5, 2024  on the occasion of the celebration of the 117th anniversary of the Mexican Constitution , already put forward , the proposal that INFONAVIT  be able to resume its activities as a construction company and thus not only offer financing options as it has been doing since 1992, but also develop housing and make it available to workers under the social rental or ownership scheme.

Now, Claudia Sheinbaum 's administration has continued an ambitious reform to revitalize INFONAVIT  as a builder of social housing. The plan includes the construction of one million low-cost homes, with a social leasing model that would allow workers to rent a home for no more than 30% of their income, with the option to purchase after ten years.  Although the reform seeks to expand access to this right, it also faces criticism for the concentration of government power and the exclusion of INFONAVIT from the supervision of the National Banking and Securities Commission, raising concerns about potential financial and transparency risks.

And the housing problem in Mexico reflect a multidimensional challenge . While the proposed reforms offer promising solutions, they also highlight the need to implement INFONAVIT​anti-corruption measures and ensure a balance between the parties involved. and the housing problem in Mexico reflects a multidimensional challenge . While the proposed reforms offer promising solutions, they also highlight the need to implement effective anti-corruption measures and ensure a balance between the parties involved.

In a country where millions still lack decent housing, strengthening INFONAVIT  as a social instrument must be accompanied by transparent management and a long-term vision that prioritizes the well-being of workers over private or political interests.

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