Airbnb’s model in Mexico City has moved beyond the collaborative economy with which it began, becoming a professionalized real estate activity, according to experts. Between 2019 and 2024, the supply of entire homes and apartments increased from 9,193 to 17,430 units, while the number of owners with multiple properties, management companies, operators, intermediaries, and investors also grew.
In Mexico City, this transformation also changed the supply of temporary accommodations and its relationship with the housing market, according to the book “Airbnbification in Mexico City: Transformation of the Rental Market,” presented at the Institute of Geography of the National Autonomous University of Mexico (UNAM).
Based on data extracted from sources such as Inside Airbnb, the book explains that between 2019 and 2024, the supply of entire apartments and houses on Airbnb located in the capital nearly doubled, increasing from 9,193 to 17,430 units.
In contrast, private rooms declined, reflecting a shift away from the original model of sharing a home. José Gasca Zamora, director of the University Program for Urban Studies, explained that this transformation does not depend on the platform owning the properties.
“Airbnb does not need to own the assets from which it generates profits; its privileged position comes from controlling digital infrastructure. Rather than simply being a sharing economy, we are facing a model in which real estate rents are accumulated,” he stated at a press conference.
How did Airbnb’s professionalized model grow in Mexico City?
The data in the book show greater participation by actors capable of managing multiple properties. In 2019, hosts managing multiple entire properties represented 37.1% of the market. By 2024, their share had increased to 55.2%.
In contrast, single-unit hosts, those with only one property, reduced their presence from 49.2% in 2020 to 32.2% in 2024.
Concentration also increased among providers: in 2020, 2.4% of hosts controlled 16.5% of the properties. Four years later, 6% of providers controlled 38.1% of the total supply, equivalent to nearly four out of every 10 accommodations.
How did Airbnb transform the urban experience?
One of the platform’s main innovations was incorporating the promise of an urban experience. From its origins, Airbnb was associated with the possibility of “living like a local.”
“A neighborhood, an atmosphere, and the discovery of everyday life are offered. However, the expansion of this model can make it difficult for local residents to continue living in those areas,” explained Gasca Zamora.
Cecilia Caracheo Miguel, coordinator of the Urban Planning degree program at UNAM, emphasized that Airbnb not only changed the way people stay in a city, but also affected local housing markets.
“The book demonstrates that the supply is concentrated in areas with greater infrastructure. This concentration is not neutral and tends to reproduce urban inequalities, while the benefits are concentrated among a small number of people or property owners and management companies,” she stated.
What pressure does Airbnb place on housing?
The book documents that after the pandemic, between 2022 and 2023, the platform experienced an expansion greater than that recorded at the beginning of 2019. In some areas of Mexico City, more than 60% of the existing housing stock became part of this rental business model.
Authors Alejandra Garrido Rodríguez and Manuel Suárez Lastra describe this process as an “invasive phase” of Airbnb.
“In some cases, there are areas where more than 60% of the existing housing stock is included on the platform, so it can be said that the platform has entered an invasive phase,” they stated.
The authors added that the platform’s growth “has incorporated new territories into this temporary rental logic, reshaping territorial dynamics.”
Where should Airbnb regulation in Mexico City go?
For the study’s authors, the regulatory debate should move beyond discussions about tourism control and focus on a perspective of socio-territorial justice.
“While platforms appeal to economic freedom, local governments must ensure the right to the city through redistributive public policies that prioritize residential use of land over tourism use,” warns author Adriana Enríquez Montoya.
Among the necessary measures are:
- Tax reductions and incentives for property owners who rent their properties through the traditional residential rental market.
- Ensuring legal certainty for these landlords.
- Establishing “high-pressure zones” where the addition of new housing units to platforms is prohibited.
- Fines for those who violate residential land-use regulations.
Source: eleconomista
