Mexico's top three homebuilders are struggling

Mexico's top three homebuilders, facing heavy debt burdens and holding land where Mexicans no longer want to live, will sell fewer homes this year, leaving a market wide open for smaller rivals or even private equity funds to snap up business.

Latin America's second-largest economy has a young population, high employment and a housing deficit of about 9 million houses but the biggest homebuilders misplayed that opportunity and overspent on land they are now struggling to sell.

Sales of Geo, Homex and Urbi's low-cost homes in sprawling developments far from offices and schools have tumbled in the last year as government policy has changed to support a trend among Mexicans to buy older houses closer to city centers.

Source: Reuters