Understanding Gentrification in Mexico City
In recent days, the term gentrification has surfaced in public debate due to protests against this phenomenon in Mexico City (CDMX). This process displaces low-income individuals to the outskirts, according to the city government’s own diagnosis.
The Program General de Ordenamiento Territorial de la Ciudad de México 2020-2035 reports that the capital annually expels over 20,000 households from income deciles I to V due to the lack of affordable housing options. Despite this displacement, most of these individuals maintain their jobs in the city, resulting in over 1.5 million daily commutes between metropolitan municipalities and central boroughs.
“It’s crucial to note that these amounts refer to two-bedroom properties on average, based on the total offer available online,” explained Juan Escobar, head of Data Science at Homie.mx.
Government Strategies in Mexico City
Under the leadership of Clara Brugada, the city government aims to execute approximately 200,000 housing actions over six years to uphold the right to housing for all capital residents.
Currently, around 50,000 households face housing deficits—lacking proper construction materials, basic amenities, or enduring overcrowding. Beyond insufficient housing supply in the capital, other factors hinder individuals from exercising their housing rights:
- Nine out of ten people without housing also lack access to bank credit.
- Eight out of ten individuals cannot secure rentals in their preferred locations.
- Approximately 53,000 households require access to rental housing schemes.
To address these issues, the government plans to tackle the problem from multiple fronts:
- Increased budget for housing issues. This year, a budget of 9,000 million pesos was approved, up from 4,000 million pesos in 2024.
- Housing for rent as a new modality. For 2025, the capital’s government intends to build 5,000 homes for rent with the option to buy.
- Housing regeneration. The capital’s administration will undertake habitational rehabilitation actions, starting in Tlatelolco.
- Simplified permit processes. The goal is to resolve regulatory issues and expedite approvals, ensuring no construction permit takes more than five months.
This strategy also includes an expropriation plan for properties to develop social housing. Additionally, it’s accompanied by regulations limiting short-term rental occupancy (like Airbnb) to 50% of annual nights. Critics argue this doesn’t solve housing issues but restricts entrepreneurship options.
Now, the challenge for Mexico City is not only curbing price hikes but also balancing private capital influx with a robust social housing policy that doesn’t displace vulnerable sectors.
Key Questions and Answers
- What is gentrification? Gentrification refers to the transformation of neighborhoods from low-value to high-value, often displacing original, lower-income residents.
- Why is gentrification a concern in Mexico City? Gentrification displaces over 20,000 households annually, forcing low-income residents to the outskirts while maintaining their jobs in the city.
- What strategies is the Mexico City government implementing? The government plans to execute 200,000 housing actions over six years, increase housing-related budgets, introduce housing for rent options, regenerate existing housing, simplify permit processes, and expropriate properties for social housing development.
