Introduction
Guadalajara, Jalisco. Digital platforms offering temporary housing are not responsible for the increase in rent and home prices in the Area Metropolitan of Guadalajara (AMG), as the properties offered for this service only account for 0.3% to 0.4% of the housing stock in the metropolis, according to a study by Alternativa Consultores.
Study Findings
The study concludes that banning or restricting temporary accommodation platforms, as demanded by some community groups against gentrification, would not solve the issue of rising housing costs or improve access to affordable housing.
Context and Concerns
Recently, a peaceful march against gentrification and displacement was held in Guadalajara, organized by the United Front for Dignified Housing and Territory. According to the Jalisco Institute of Statistics and Geography (IIEG), the average price for new homes in Guadalajara’s metropolitan area is 3.7 million pesos, with high-end rentals ranging from 50,000 to 70,000 pesos and low-end rentals from 5,800 to 8,800 pesos.
The protesters’ demands included regulating platforms like Airbnb, VRBO, and Booking. However, Mario Ramos, director of Alternativa Consultores, states that the housing challenge lies in structural causes such as over 208,000 vacant homes, a sustained decline in social housing construction, rising construction costs, lengthy permit processes, and limited financing options.
Potential Harm from Restrictions
Ramos warns that restricting or banning temporary housing in the city could divert attention from the root causes of the problem and lead to regulations that, instead of solving the issue, negatively impact tourism competitiveness, economic development in communities, and tax revenue.
He emphasizes that the debate on gentrification and affordable housing access in Guadalajara’s metropolitan area has become a significant social concern over the past decade, with residents seeking public policy that ensures fair rents and access to affordable housing.
However, Ramos notes that the public discussion has incorrectly focused on temporary housing as a primary factor directly influencing rent and home prices. An initiative already exists in the state congress to regulate these platforms within the entity.
More Vacant Homes Than Temporary Housing
The study, using data from INEGI and official sources, indicates that the Guadalajara metropolitan area has 1.5 million housing units, with approximately 4,700 being fully rented temporary accommodations. This accounts for only 0.3% of the total housing stock, while vacant homes make up 2.3%.
Even in Guadalajara, where most temporary housing is concentrated at 0.6% of the municipal housing stock, the proportion remains marginal compared to the high number of vacant homes (9.4%) in the city.
“The empirical evidence provided by the study confirms that the affordable housing issue in the metropolitan area is multifaceted and may be primarily associated with the shortage of social and economic housing construction, among other factors,” Ramos stated.
Adverse Effects of Regulation
According to Alternativa Consultores, international and national experiences with regulating temporary housing platforms show that restrictive measures have not resolved the issue of affordable housing access and, in many cases, have caused adverse effects.
“In New York, strict night limits led to increased traditional lodging costs by raising hotel rates; meanwhile, in Barcelona, zoning attempts resulted in more informality and shifted tourist spending to unregulated areas,” Ramos concluded.
Key Questions and Answers
- Q: Are temporary housing platforms driving up housing costs in Guadalajara? A: No, according to a study by Alternativa Consultores, temporary housing platforms only account for 0.3% to 0.4% of the housing stock in Guadalajara’s metropolitan area, making their impact on the housing market limited.
- Q: What are the structural causes of the housing challenge in Guadalajara? A: Structural causes include over 208,000 vacant homes, a decline in social housing construction, rising construction costs, lengthy permit processes, and limited financing options.
- Q: What are the potential consequences of restricting temporary housing platforms? A: Restrictions could negatively impact tourism competitiveness, economic development in communities, and tax revenue without addressing the root causes of housing affordability issues.
- Q: How does the number of vacant homes compare to temporary housing units in Guadalajara? A: There are approximately 4,700 temporary housing units in Guadalajara, accounting for only 0.3% of the total housing stock, while vacant homes make up 2.3%. This is marginal compared to the 9.4% of vacant homes in the city.
- Q: What have been the effects of regulating temporary housing platforms internationally and nationally? A: Restrictive measures have not resolved affordable housing access issues and, in some cases, have caused adverse effects such as increased hotel rates and shifts in tourist spending to unregulated areas.
