For some time now, high rental costs in Mexico City have become a problem. One of the causes of this issue has been gentrification; in this regard, the Mexico City government has been promoting a series of policies that could somewhat mitigate the problem. However, trying to live in the capital has not stopped being an obstacle.
What study reveals that rents in Mexico City exceed rents in Europe?
The study revealing that rents in Mexico City have surpassed rents in places in Europe comes from the Working Abroad Index 2026, an annual study by the European neobank bunq that compares the cost of living in 74 cities around the world.
It revealed that renting an apartment in the Mexican capital currently costs an average of $936 dollars per month, equivalent to 15,800 Mexican pesos, which exceeds the price of several capitals of the European Union.
This report compares rental costs in 74 cities, placing the average rent in Mexico City at $936 dollars per month. The rental cost exceeds that of several European Union capitals, such as:
- Bucharest reaches $587 dollars (9,909 Mexican pesos)
- Athens: $684 dollars (11,547 Mexican pesos)
- Vilnius: $762 dollars (12,864 Mexican pesos)
- Budapest: $799 dollars per month (13,489 Mexican pesos)
Which cities in Mexico have rents similar to Mexico City?
The index also analyzed housing costs in three other capitals. San Miguel de Allende recorded an average monthly rent of 15,210 pesos, a value close to that observed in Mexico City, placing it among the destinations with the highest rental costs within the sample.
Meanwhile, Mérida recorded an average rent of 10,123 pesos per month, while Oaxaca recorded an average of 10,630 pesos.
Of the Mexican cities considered in the study, Oaxaca was identified as the most affordable option. Although housing prices can vary depending on the area, type of property, and its characteristics, the data provide a reference for the differences in rental costs among some of the country’s main destinations.
According to the study, what are the causes of rising rents in Mexico City?
The increase in rents in Mexico City is the result of several factors. First, there is an insufficient supply of affordable housing compared with growing demand to live near jobs, schools, services, and transportation; for this reason, the city government is seeking to increase social housing and affordable rental housing.
Gentrification and the redevelopment of neighborhoods also play a role, increasing property values and rents and potentially displacing residents; as do short-term rentals and tourism-related use, which reduce the amount of housing available for residential leases and put pressure on prices.
There is also increased demand from remote workers, foreign residents earning income in other currencies, and people attracted to central areas, especially:
- Roma
- Condesa
- Juárez
Speculation and a lack of effective regulation also contribute to increases, due to prices exceeding people’s ability to pay and limited information about contracts and availability. For this reason, Congress has discussed annual limits tied to inflation and monitoring mechanisms.
Source: posta
