While the global housing crisis presents a need for urgent action, the climate crisis is just as pressing. Building affordable, resilient homes is essential to ensuring that housing construction does not contribute more to the climate crisis, as well as increasing long-term housing tenure. International Finance Corporation is a leading investor in housing finance in emerging markets, and they have worked to catalyze green, resilient, and inclusive housing markets as well.
In Mexico, IFC provided liquidity to public sector mortgage originators in order to expand housing market access to underserved populations. IFC established FHipo in 2014 in Mexico as an investment vehicle for the public to invest in residential mortgage portfolios, so that investors can access Mexico’s residential mortgage market while lowering mortgage costs for workers. This project aims to increase liquidity of residential mortgage originators and to support the consolidation of the first Mexican mortgage REIT.
Source:
International Finance Corporation. (2023) Factsheet: Green, Resilient and Inclusive Housing Finance. International Finance Corporation.
Link: https://www.ifc.org/en/insights-reports/2023/green-resilient-and-inclusive-housing-finance