Three Years After Housing Implosion, Mexico Risks Another Mess

07/15/16 Bloomberg 

DCF 1.0

Three years after Mexico’s housing crisis wiped out $4 billion in stocks and bonds, the industry risks suffering another downturn.

That’s because President Enrique Pena Nieto has close to doubled subsidies for low-income housing in the past two years. Moody’s Investors Service analyst Francisco Vazquez said that has encouraged developers to go on a construction spree even as a sluggish economy saps demand for new homes. Much of the new building is also taking place in the outskirts of major cities where few services are available, he said.

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