Valuing characteristics of houses subject to public financing: the case of the metropolitan area of Monterrey

Abstract

Reforms to the Mexican Social Security System in 1997 have risen acquisitions of houses using loans granted by Infonavit. The objective of this paper is to determine how attributes of houses with possibilities of being financed by Infonavit are valued. This paper uses the hedonic price methodology to information of residences in the metropolitan area of Monterrey. It is interesting to observe that, for this type of homes, although a third bedroom is highly valued, an additional bathroom is not. On the other hand, evidence shows that an urban development plan including construction of houses, shopping malls and medical centers would increase value of homes in vicinity where a small demand would be otherwise.Precios hedónicos; Seguridad Social; Viviendas