Mexican Migrants Are Turning Remittance Money Into Dream Homes Back in Mexico
We all remember Mom or Dad sending money to family in other countries. Remittance payments are one reason migrants make their way to countries like the United States. Finding work up north is a way so many people make money to send back to their families to help pull them out of poverty.
Migrants in the U.S. are making the most of their remittance payments. Instead of sending cash, many are using the money to build new or renovate existing homes. CEMEX, a multinational construction company based in Mexico, is helping to make their dreams a reality.
Mexican migrants are using United States dollars to construct homes in their hometowns
A TikTok video posted by @nmasmedia dives into the growing trend of Mexican migrants building homes in Mexico. The homes stand out because of their style. Predominantly, people are building homes in Mexico that look more like homes in the United States and abroad.
According to the informative video, about 2 percent of people in Mexico rely on remittance from family in other countries. According to reports, migrants sent $63 billion in remittance to families in Mexico, an increase from previous years. Families benefit from the money used for food, medicine, education, and, increasingly, home construction.
Rooted in practical reasons, home construction offers a lifeline to migrant families. It is a way to build generational wealth. Families create financial stability. It is also a way to pull families out of poverty. Many migrants in the U.S. want to make sure they have a home to go back to when they leave.
Remittance payments to Mexico continue to go up with a focus on specific areas
The video not only highlights the growth of construction projects funded by migrants in the U.S. According to the video, the areas with the most remittance are Michoacán, Guanajuato, Jalisco, Ciudad de México, and the State of México. California, Texas, and Georgia are the three states with the most remittances to Mexico.
According to NextBillion, Mexico-based multinational corporation CEMEX has a Construmex program to help facilitate these constructions. They do this by productizing remittances, which means people sending money back are getting the most out of their dollars. Avoiding transfer fees and bank fees by doing construction instead of sending back cash has allowed more people to start building new or better homes.
“Money transfers can be expensive, and family members back home frequently spend the money on other things. And many immigrants don’t know how much cement to buy or how to build a roof, so their hard-earned savings often are wasted,” Thamel.com founder Bal Joshi said, according to NextBillion. “That’s where Construmex comes in: Its architects help clients design home plans and calculate how much material to deliver and at what time intervals. The company also finances the purchase of the construction materials.”
Honestly, this does seem like a smart way to use your money to benefit your family for the long term. Building homes that make their life better and offer them a place to go back to is a smart choice. Homeownership is a good pathway to financial stability. The trend of housing markets going up and adding value to property is a strong way to build equity.
