Mexico City now faces a housing crisis that forces over 20,000 families out of the city every year. Official city data shows average home prices have reached 3.8 million pesos, making the capital the most expensive place to buy property in the country.
Rents have also jumped sharply, with some neighborhoods like Granada and Hipódromo charging over 50,000 pesos ($2,700) a month for a two-bedroom apartment. Most families leaving the city come from the lowest income groups.
Many still work in the city, which leads to over 1.5 million daily commutes from the outskirts to central areas. This adds stress to public transport and increases costs for workers and businesses.
The city has a shortage of about 50,000 homes. Many available homes are overcrowded or lack basic services. Nine out of ten people without a home cannot get a bank loan, and eight out of ten cannot afford to rent where they want.
Around 53,000 families need access to affordable rental options. Foreign remote workers have sped up gentrification in popular districts. These newcomers can pay much more than locals, which drives up rents and pushes long-term residents out.
Mexico City Boosts Housing Budget to Tackle Affordability Crisis
The trend now spreads to new neighborhoods, making the problem worse. The city government, led by Clara Brugada, has doubled the housing budget to 9,000 million pesos for 2025.
Plans include building 5,000 new rental homes with an option to buy, fixing up existing homes, and making building permits faster. The government has also started taking over properties for social housing and now limits short-term rentals like Airbnb to half the year.
Despite these steps, the challenge remains to keep housing affordable for everyone. Businesses worry that rising costs will make it harder to find workers and keep operations running smoothly.
The story behind the numbers is clear: if the city cannot provide enough affordable homes, more families will be pushed out, and the city’s economy and social fabric will suffer.
