Gentrification in Mexico City has become a hot topic over the last couple of years and it is definitely an issue that is going to continue to escalate if it is not addressed in the correct manner going forward.
While the Mexican capital was once a place that many people were nervous about traveling to, it became a hotspot for remote workers and digital nomads during the global pandemic.
Mexico City, like many states and cities in Mexico, has historically had a less-than-desirable reputation and has not always been known for its safety. However, as people in the US, Canada, and elsewhere around the globe chose Mexico as their backdrop to work from during the pandemic instead of working from home in their own countries in quarantine, many quickly discovered the charm of CDMX.
They learned that many stereotypes and fears about the city were unwarranted and spread the word far and wide among their remote working friends. As a result, the number of people choosing to relocate to CDMX or hang out there for an extended period of time is increasing.
While there are definitely pros and cons of globalisation, the “fabric” of many of these neighborhoods is starting to change and locals are not happy about it.
Gentrification in Mexico City in 2024
Mexico City is both the largest and the oldest city in North America. Consisting of over 300 different neighborhoods or “barrios”, each district of CDMX is essentially like a little village in itself, and each has its own unique personality and charm.
For instance, Coyoacan, with its leafy cobbled streets, art galleries, quirky coffee shops, and museums, is to Mexico City what Greenwich Village is to New York and has been the residence of choice for many artists and creatives going back centuries. Then there’s San Miguel, with its bohemian feel and mercados that serve up some of the best tacos and tortas in town, the lesser-known foodie district of Navarte, and the upscale district of Polanco, home to some of the most acclaimed Michelin-starred restaurants in the world.
Basically, with 300 barrios to choose from, and each one more charming than the last, you could spend literally years in Mexico City and still constantly be discovering something new.
However, owing to the aforementioned safety concerns, as well as the desire to be somewhere somewhat central and with all of the amenities and comforts they can find at home, most remote workers and tourists tend to stick to the same few areas. Head to Roma Norte, Roma Sur, Anzures, Condesa or Polanco and you will hear more English than Spanish spoken in certain areas.
Displacement of locals
The arrival of so many wealthy foreigners in these 5 districts is causing rental costs to skyrocket, pushing Mexicans out of their neighborhoods. In a country where the minimum wage is just 248 MXN pesos a day (just $14.55 USD), and where, according to an August 2023 study, the average monthly salary is just $630 USD a month, locals simply cannot afford the 20,000/25,000 pesos ($1173 – $1466 USD) rent in neighborhoods like Roma and Condesa.
These are areas that were historically quite working class and now, locals need to move further and further out of their city center to find accommodation that they can afford. A month’s rent here is more than most Mexicans earn in several months.
New businesses like trendy bars, craft breweries and coworking spaces that accommodate to wealthy expats are popping up left right and center, with many existing establishments changing their menus and offering to cater to their clientele.
While the creation of new jobs and businesses can be seen as a positive contributor to the Mexican economy, the wait and service staff that serve these customers can no longer afford to hang out in the same areas that their clientele frequent.
How can we move forward?
Unfortunately, gentrification and the Airbnb-ification of Mexico City is not just a “Mexico problem” even if the sudden interest of people moving to the area is a new thing for Mexico. It’s a similar story all over the world.
Athens, Greece, has changed phenomenally over the last few years as once affordable neighbourhoods like Koukaki, Pagrati and Vyronas have seen prices more than a double in a short period as foreign investors buy up entire apartment complexes and rent them out to tourists. It’s an issue in Porto and Lisbon in Portugal, and even in New York City and Vancouver, where the government have developed new legislation that prevents people from renting out properties that they own as a short-term rental unless it is their primary residence.
In Mexico City, people have projected a lot of anger towards expats and foreigners, with protests taking place in the city streets and “go home gringos” spraypainted on walls or scribbled on signs affixed to streetlamps and alleyways. Unfortunately, as long as people are legally allowed to spend extended periods in foreign countries and relocate overseas and are encouraged by the Mexican government to do so, people are going to continue to travel to CDMX.
The answer no doubt lies in legislation. As foreigners and travelers, we can try and make ethical, mindful decisions when we travel.
We should opt to shop around for rental contracts in Mexico City that charge the correct price, rather than heavily inflated rates or Airbnbs. We can travel to non-gentrified Mexico City neighborhoods and support local businesses, rather than stay in the gringo hubs and if we are going to be spending a lot of time in a country, we can apply for residency so that we contribute and “pay our share” as tax paying residents.
But with all that being said, foreigners too are often at the mercy of unscrupulous hosts and landlords that charge heavily inflated prices and refuse to budge on their ludicrous rental prices. Many foreign people are good people that dream of living in a different country or culture and are simply unaware and uninformed about the extent of these issues.
That is where the government needs to come in. Regulate the use of Airbnb, and set rent control so that a maximum upper limit of what landlords can charge is established.
Unfortunately, while a lot of people are making a lot of money on the back of this, things don’t look likely to change any time soon. Tourism makes up 8.5% of México’s GDP and between 2021 and 2022, the country saw a 20.3% increase in tourists year over year – something that looks set to continue to increase going forward.
I live in the Yucatan capital of Merida, a cultured city that is only really popular among a handful of retirees. However, with the $28 billion-dollar Tren Maya train that connects the city to Cancun and various places in the Yucatan peninsula finally up and running, increased promotion of the region, and the construction of the new Tulum international airport, surely it will only be a matter of time before gentrification spreads to other parts of Mexico too.
Sources
Ogletree – Mexicos minimum wage increases in 2024
Take profit – Mexico average wages
Gentrification in Athens Greece
New short term rental legislation in Vancouver, British Colombia
Tourism is 8.5% of Mexico’s GDP
Thanks for this article! These are really important points for us travelers to keep in mind—our effect, both for better and worse, on the places and peoples we visit.