LATIN AMERICA ADVISOR

LATIN AMERICA ADVISOR

A daily publication Of the dialogue

August 4, 2025

Why Are Living Costs Escalating in Mexico City?

Protesters have recently linked tourism and an increased numbers of foreigners in Mexico City (pictured) to rising housing prices. // File Photo: Mariana Ianovska via Adobe Stock.

Q

A

Amanda Mattingly, former U.S. diplomat and founder of ACM Global Intelligence: “Since the pandemic, Mexico City has seen an influx of digital nomads who have driven up housing prices in neighborhoods like Roma and Condesa. It’s true that American Airbnb-ers are looking for charming barrios such as these, and Mexico’s attractive residency options and tax-friendly regimes for foreign nationals make it a top destination. Issues of affordability and a backlash to the Airbnb economy are not unique to Mexico City. Affordability is a central issue in the New York mayoral race this year, while protests against tourists and gentrification have been seen across European cities since last year. But ‘gringo-go-home’ protests in Mexico City seem to ignore other truths about the city. Poor urban planning and the lack of new housing since 2010 have led to a surge in prices and an outflow of legacy, lower-income residents. Mexico’s national statistics agency indicates that Mexico City’s rate of new housing built between 2010 and 2020 was the lowest in the country. National data also suggests that the average …”

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The Inter-American Dialogue publishes the Latin America Advisor every business day for a distinguished membership of informed corporate leaders, scholars, and government officials invested in Latin America’s development and future. The Advisor‘s highly regarded Q&A section covers questions submitted by subscribers themselves. Commentators regularly include heads of state, business leaders, diplomats, economists, analysts, and thought leaders from around the world. Many of the world’s largest and fastest-growing companies subscribe to the Advisor. To subscribe, click here. For terms and conditions, click here. For more information, contact Gene Kuleta, editor of the Advisor, at gkuleta@thedialogue.org.

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