Mexico City, Mexico — The rental housing sector in Mexico faces a critical juncture, with soaring demand, digital platform interventions, and real estate investment trusts (Fibras) contributing to a severe affordability crisis. Specialists warn that the next government must prioritize housing policies to address these growing challenges, which are particularly acute in Mexico’s largest cities.
According to data from Inmuebles24, as of April 2024, the average monthly rent for a 65-square-meter apartment reached 17,800 pesos in Mexico City and 22,700 pesos in Monterrey, Nuevo León. These figures represent a year-on-year increase of 17% and 20%, respectively, compared to April 2023.
The escalating rental costs are forcing many residents to seek more affordable housing in peripheral areas. “We have noticed variations in certain cities. In the country’s capital, we saw a 16% annual increase in the volume of people looking for a home to rent during the fourth month of this year; while in the State of Mexico, demand soared 47% compared to 2023,” said Carlos Arias, head of communications at Inmuebles24, in an interview.
Maria Silvia Emanuelli, coordinator for Latin America of the Habitat International Coalition (HIC-AL), highlighted the need for a comprehensive housing policy that promotes the expansion of housing supply and supports the social production of habitat. She emphasized that regulatory measures for platforms like Airbnb, though somewhat advanced, are insufficient to stabilize market prices in Mexico City.
Emanuelli also pointed to the proposed reform of Article 123 of the Mexican Constitution, which aims to redirect resources from the National Workers’ Housing Fund Institute (Infonavit) towards housing construction, coupled with a social leasing scheme. “The proposal is very interesting, although there is a risk in thinking that public rental housing could enter the commercial logic with the possibility of its sale. In many countries, it has been difficult to defend these properties when they enter the market,” she cautioned.
Global Housing Crisis Reflects in Mexico
The housing affordability crisis is not unique to Mexico. According to Miguel Robles Durán, co-founder of the international consulting firm Urban Front, more than 40% of tenants in major metropolises like Mexico City spend over a third of their income on housing. “Having a roof over your head is a basic necessity, but it has become virtually unaffordable for most people. There is no doubt that we are experiencing the largest global housing crisis in modern history, caused by high prices, severe shortages, and predatory financial speculation,” Durán stated.
Experts underscore the necessity of state intervention in the housing sector, calling for the creation of protection mechanisms for those struggling to pay rent. “There is an imbalance in power relations when a vulnerable person seeks to defend themselves against eviction for non-payment of rent. A profound change must be made in the regulations to confront the corruption in the practice of lawyers and judges who continue to fail to consider that human rights are part of our legal system, since the right to property continues to be privileged,” Emanuelli added.
