Protests in Mexico City against gentrification. Photo: Habitat International Coalition.
The price of rent in Mexico has increased exponentially since the arrival of the so-called “digital nomads” during the COVID-19 pandemic
During the COVID-19 pandemic, residents of Mexico City’s central Roma and Condesa neighborhoods began to notice a curious phenomenon: hundreds of foreigners, above all US citizens, began to inhabit these upper-middle-class neighborhoods.
Many of them call themselves “digital nomads”, that is, digital platform workers who do remote work and, therefore, decide to migrate to countries where their salary allows them to have a higher standard of living.
Gradually, the dynamics of these areas changed. Coffee shops began to appear where the new migrants worked, charging prices never before seen in a Mexican city.
Health food stores and gyms proliferated, offering prices that are unaffordable for most nationals, while the oldest local businesses began to close due to a lack of customers.
Likewise, the rent for houses and apartments have skyrocketed. People who have lived in these communities for decades were no longer able to pay their rent, and many more businesses had to close their doors because of the rising prices.
Some in the neighborhood decided to convert their old apartments where families had lived for decades into short-term accommodations for tourists, further contributing to the rise in prices.
The figures are stunning. In 1995, the annual increase in the price of rent in Mexico was 24.66%. By 2025, housing inflation stood at 122.47%.
As far as the price of home ownership, in 1995 inflation was 26.25%, by 2025 the price increase climbed to 120.83%.
Furthermore, the phenomenon especially affects the poorest, the 46% of society that spends more than 30% of their income on housing costs has seen themselves increasingly segregated in these changing neighborhoods.
In addition, we must add that Mexico is a country that has entered a real housing crisis: there are more people than houses. The housing deficit has been pointed out by activist groups, academics, and politicians, who argue that the primary driver of the crisis is rising housing prices.
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A mobilization against gentrification
This whole process is known as “gentrification” and has provoked massive opposition by Mexican citizens who, on July 4, came out to demonstrate in the streets of the Mexican capital and reject the increased cost of living.
A protester, Daniela Grave, told the New York Times: “The playing field is not level.”
She explained, “If they make a living in dollars, and don’t pay taxes here, we are just in unequal circumstances, Mexicans and foreigners, where those who have salaries in dollars have all the power to exert in this city and that is what should be regulated.”
Demonstrators raised slogans rejecting the settlement of the new inhabitants in their neighborhoods and claimed they are detrimental to the economy and culture of Mexico. Messages such as “Say no to colonial gentrification”, “Go back to your damn country, gringo”, “Our identity is not a business” or “Pay taxes, learn Spanish, respect my culture” were repeated throughout the march. At some points in the march, some businesses frequented by the “digital nomads” were targeted and damaged.
The demonstration made Washington uncomfortable, whose Department of Homeland Security ironically posted on X: “If you are in the United States illegally and wish to join the next protest in Mexico City, use the CBP Home app to facilitate your departure.” The app is a tool used in the US for irregular migrants who decide to voluntarily leave the US.
The government’s response
Mexican President Claudia Sheinbaum ignored the retorts from the US and decided to focus on the situation at hand. Sheinbaum rebuked the protest, condemning the messages she considers xenophobic, while promising some kind of control and state action to reverse the trend: “No matter how legitimate a demand may be, such as opposing gentrification, it cannot call for any nationality to leave our country.” She added: “Mexico is a country open to the world.”
However, Sheinbaum, who was Mexico City’s chief from 2018 to 2023, also stressed that some kind of intervention by the state is necessary to address the critical housing situation in Mexico. She especially spoke about short-term rentals for tourists: “There is a lot of real estate speculation derived from Airbnb rentals and all these digital platforms,” she said. “It can’t be making the city more expensive.” In addition, she referred to the urgency of building affordable housing.
For her part, the current Mayor of Mexico City, Clara Brugada (who belongs to Morena, the ruling party), stated that she would accelerate the regularization of digital hosting platforms. She also promised to hold assemblies with the affected communities.
However, it will be challenging for the state to regulate the phenomenon of gentrification without entering a war with large digital corporations, who are practically inscribed in the DNA of the capitalist system in Latin America, reaching countless cities around the continent.
