Consequently, Mexico City has exploded in popular rebellion against gentrification and heretofore unseen attacks on cost of living. Residents are rightly taking to the streets to express their anger at the changing character of their neighborhoods. Since 2005, housing costs in the capital have skyrocketed by 286%, while real wages have dropped 33%. The situation has led to growing unrest, particularly as many residents face evictions and financial strains exacerbated by foreign investment and short-term rental platforms like Airbnb.
These protests have generated both glowing support and furious debate. Activists vehemently contend that they are battling for their human rights, as critics derisively characterize some of these protests as xenophobic. The situation has exploded as protestors deface shops in more privileged neighborhoods, using xenophobic and anti-immigration discourse to justify their actions. The government of Mexico City, in which about a quarter of the city’s municipalities are home to these “Barrios Originarios,” has begun to enforce regulations aimed at stemming gentrification. According to experts, these steps are unlikely to address the underlying issues.
The Impact of Housing Costs and Foreign Influence
Mexico City has experienced an overwhelming increase in housing costs. This skyrocketing inflation has greatly outstripped residents’ wage growth, pushing many area residents closer to the financial edge. At the same time that local housing prices have skyrocketed, the purchasing power for many of the people who are already local has disappeared.
In 2022, Mexico City issued more than 122,000 temporary residency permits to foreigners. This was a 371 percent increase from the roughly 97,000 permits issued in 2019. Newcomers are pouring in, largely from the US and Europe. In the process, this housing boom is increasing the demand for housing in neighborhoods that are already hurting. Unsurprisingly, Airbnb is certainly not helping with more than 26,500 listings in the city, mostly concentrated in areas hit hardest by gentrification.
“Since 2020, a new phase of gentrification has begun, one that has worsened,” – Carla Escoffié
Experts believe this latest round is mostly the result of digital nomadism and short-term rental websites such as Airbnb. The platform has previously defended its role in the city’s economy, asserting that it created more than $1 billion last year. For every claim Airbnb makes the opposite, there’s a resident who can tell you firsthand how Airbnb has increased rent and/or depleted housing stock.
Protests Reflect Diverse Perspectives
The protests have drawn attention not only to the financial burdens faced by residents but to the complex dynamics of migration and gentrification. Activists argue that their battle is not against migration, but against the criminalization of people which upholds an unjust status quo.
“We are not against migration because gentrification is not a problem of migration (which is) a human right. We are against violence as a government model,” – Yessica Morales
It was Claudia Sheinbaum, mayor of the Mexican capital, who most vociferously condemned the discrimination. She proclaimed, “Say no to discrimination, say no to racism, say no to classism, say no to xenophobia, say no to machismo. All human beings, all men and women are equal.” This is a huge testament to an amazing grassroots movement in the city. Its goal is to address the underlying forces of gentrification and advance equitable policies.
As some critics have pointed out, the national discourse surrounding gentrification can be clouded by confusion. As Carla Escoffié from Brazil put it, “in the legislative debates, there’s a misunderstanding that gentrification is when the foreigners come. And that’s not true.” She was adamant that not all foreigners are to blame for gentrification. She further emphasized that massive migration is not the only requisite aspect for widespread displacement to occur.
Government Response and Future Outlook
In light of the protests and growing concerns about housing affordability, Mexico City’s government has taken steps to regulate short-term rentals and curb gentrification. These new regulations have the potential to guard against the displacement of residents caused by gentrification. According to these experts, despite their popularity they don’t necessarily drive systemic change.
Activists are still skeptical that these mitigation measures will go far enough to tackle the architectures of inequality and complex forces behind gentrification. Many argue that long-term solutions must focus on improving housing policies and addressing systemic inequalities that contribute to rising costs.
Given rising tensions associated with gentrification and displacement, for many residents Airbnb is a much-needed economic opportunity. According to recent surveys, 53% of hosts indicated that offering their properties on Airbnb helped them remain in their homes amid rising expenses. This duality sheds light on the complex interplay between local livelihoods and the pressures imposed by outside investment and tourism.
