Introduction
For millennials and centennials, renting an apartment in Mexico City has become the most viable option due to a lack of liquid assets for homeownership. However, this choice increasingly poses a financial challenge as rental prices continue to rise.
Expert Recommendations and Current Situation
Real estate experts advise that housing expenses, whether rent or mortgage, should not exceed 30% of a person’s monthly income. Unfortunately, the current rental prices in Mexico City are far from this ideal.
According to Index de Inmuebles24, the average rent for an apartment in Mexico City increased from 12,085 pesos per month in 2020 to 17,610 pesos per month in 2025. Meanwhile, the minimum wage for this year amounts to approximately 8,400 pesos per month, which is less than half of the average rent.
Alcaldías with the Most Significant Increases
Rental price hikes vary by area. Benito Juárez, a highly sought-after zone for its location and infrastructure, saw an average rent of 18,881 pesos per month this year.
Cuauhtémoc, home to popular neighborhoods like La Roma and La Condesa, has an average rent of 26,132 pesos per month, marking a 53% increase over five years.
More affordable areas like Gustavo A. Madero have an average rent of 14,567 pesos per month but have experienced substantial increases of 63% since 2020.
Gentrification in Mexico City
The rising rents and gentrification in Mexico City have been prominent topics in public discourse, with protests and the release of the capital’s “Bando 2” plan by local authorities.
This phenomenon has been identified as a key factor shaping the urban housing landscape. Although price growth has moderated this year, traditional neighborhood displacement is evident, according to Propiedades.com.
Areas like Tabacalera, Lomas de Sotelo, and Tacubaya have gained popularity compared to premium zones such as Polanco or Bosques de las Lomas.
“Gentrification transforms from a social or urban phenomenon into a driving force in the real estate market. Digitalization remains concentrated on high-cost segments, limiting the visibility of affordable offerings,” explained Juan David Vargas, general manager of Propiedades.com.
Key Questions and Answers
- What is the average rent for an apartment in Mexico City? The average rent for an apartment in Mexico City is 17,610 pesos per month.
- How does this compare to the minimum wage? The average rent is more than double the annual minimum wage of approximately 8,400 pesos per month.
- Which alcaldías have experienced the most significant rent increases? Cuauhtémoc and Benito Juárez have seen substantial rent hikes, with Cuauhtémoc experiencing a 53% increase over five years.
- What is gentrification and how does it affect Mexico City’s housing market? Gentrification refers to the transformation of traditional neighborhoods into more desirable areas, often displacing long-term residents. It has become a significant factor in shaping Mexico City’s housing landscape, with high-cost digitalization limiting the visibility of affordable offerings.
