It’s the great American legacy to move in on spaces deemed valuable, adopt them as their own, and push out the folks that were already there. So it’s no surprise to me to see a discourse around Mexicans being leery of gringo tourists and digital nomads, who they say have made the cost of living in Mexico City impossible for locals by driving up prices with their U.S. incomes. I fell in love with Mexico City when I first visited in 2021. I’ve visited every year since, and I’ve felt some differences. I wondered to what degree the CDMX I fell in love with had changed. So I looked at the data.
Love Letter to Mexico City
When I first visited Mexico City, I had only intended to stay for four weeks. But I ended up staying for three months! I was working remotely at the time, and had planned to embark on a Latin American adventure where I’d bounce around and soak in the cultures of the region and continue to learn Spanish. To me, CDMX had everything that I wanted in a place. Amazing culture, a rich history, top-notch food, great cafes, trendy bars, a vibrant jazz and salsa scene. I made local friends relatively quickly through Bumble BFF, AirBnb Experiences, and through salsa classes at a local dance school. And I relished the level of peace from all the beautiful parks and green space, as well as the level of spontaneity that I could garner from this dynamic place.
For the first month, I stayed in La Condesa, a particularly green area of the city, and popular with tourists. After that, I bounced around the popular neighborhoods in the city center: Roma Norte, La Reforma, Doctores (a bit fringe), Juárez, even El Centro. I got a view of what it was like to live in places like Navarte from spending time with local friends. I was happy to be able to explore the city from some different perspectives.
Some of my favorite memories revolve around music and food. I enjoyed learning salsa and going out to dance salsa at clubs. The club atmosphere, I felt, was very respectful and friendly. I bonded with strangers over street tacos as the sun came up after long nights of dancing. And I enjoyed frequenting the local jazz clubs. I remember trying exotic fruits from the local markets. (Yellow dragonfruit and mamey stole my heart, and I always made a point to buy them). Exploring new restaurants was a sport to me. Through my friends and the web, I’d figure out what should be on my hit list to try. And I was rarely disappointed.
I loved nearly every apartment that I stayed in. The one in Condesa was a dream. It wasn’t luxurious or anything, but it was near Parque Chapultepec, walking distance to Parque Mexico, and had a balcony. There was no shortage of cute restaurants and cafes nearby. And I marveled at the low price I paid for so much value. After all, I felt that I had a world of possibilities at my fingertips.
CDMX is Not Disneyland: Real City Real Problems
Despite all of the wonder of the city, I recall a not-so-pleasant incident. Mexico City traffic is rough, so I walked most places because I was rarely in a hurry. This was also a plus because I really got to know the city that way. I remember walking from Roma Norte to El Centro and finding myself walking directly through a tent city of homeless people. It was jarring and a little scary.
I mention this because I think it’s easy for visitors to forget that a city is more than just the designated playground of touristy areas. Each city is a place with real people and problems. Especially when coming from the shiny shops, bars, and restaurants of an area like Roma. And this was something that I never wanted to forget; namely because I know how it feels to be behind the eight ball and because I always want to be respectful.
Year after year I returned to the city I loved, learning new things and making new memories. However, each year that I returned, I felt that it was harder for me to find nice accommodations at the price I had paid in 2021. I felt that I was paying more to go out to the places I had originally frequented. I still loved the city, but it seemed that everything was more expensive. It also seemed like I saw many more folks from the U.S. than I had in my earlier trips. Was this actually happening, or just skewed perception?
What the Data Says
Airbnb – Cost of Living in Mexico City for Travelers
The first thing I wanted to know was were Airbnb prices really up. I went back and looked at the apartments I had rented and compared the total per night price I paid then (including fees) to what it would be to book this year. I saw that prices had indeed gone up, especially in the more trendy neighborhoods like Roma Norte and Juarez. My Roma apartment rose over $30/night since 2021! My apartment in El Centro, an area full of tourist attractions but not generally where tourists and digital nomads stay, only increased by a few dollars.
I know that increased AirBnb’s can negatively impact locals due to lower housing stock for actual rentals. This leads to an increased cost of living in Mexico City through higher rents. But this small data anecdote shows a phenom that is bad for tourists as well — AirBnb owners raising their prices. It slowly turns CDMX into just another economically inaccessible place, for locals and for some gringo travelers alike.
Rents and Tourism in Mexico
Next I wanted to know what was the cost of living in Mexico City and had it changed over time? I was able to find data on rents since 2018 in CDMX from a report by Inmuebles24. I wondered if rent movements were in any kind of step with tourist visits, so I looked at data on International tourism to the country from Mexico’s National Institute of Statistics and Geography (INEGI). Some interesting things I noticed:
- Average rents for a two bedroom apartment across the country skyrocketed in 2019 pre-pandemic. At that time, tourism was pretty steady
- Rents and international tourist visits climbed steadily from 2021 to mid-2023, with tourist visits actually dropping off a bit
- tourist visits made a massive leap from mid 2024 to December 2024; Rents during that time declined slightly
Cost of Living in Mexico City
I saw how rents range across the different alcaldías that make up the city. Cuauhtémoc is the city center where lies colonias like La Condesa and Roma Norte. Other alcaldías associated with tourism and higher rents are Benito Juárez and Miguel Hidalgo. We see that these three heavily touristed areas fall in the top four for highest average rental prices, and that Cuauhtémoc leads the pack, with average rent near $1500/month. It would have been nice to see the median rents to better understand if this average price is just being pulled up by some expensive properties.
I also looked at a breakdown of the profitability of owners who rented apartments in these areas to give more context to the rent ranges in the city overall. Colonias in Cuauhtémoc, la Condesa and Guerrero, only appeared in the middle tier for prices and returns, which I thought was interesting because this is one of the most discussed areas in terms of gentrification, and on average has the highest rents.
The Space Between
So it appears that the cost of living in Mexico City has increased over the last few years. The interesting thing is that this is a phenom that started in 2019 before the pandemic. When that happens, it’s usually due to less available supply of housing than demand. And at that time, tourism levels were at a relatively slow increasing trajectory, so it would be a leap to say this supply and demand gap was due to tourism. Of course, COVID slashed tourism and rental prices in 2020, but each one turned back on an upward trajectory the following year.
When I entered the scene in 2021, that rebound had just begun. I got to experience Mexico City at a level before the rental spike in 2019 and at a lower rate of tourism than what was normal pre-pandemic. This allowed me the space to fall in love with the culture, food, beauty, and vibrancy of the city at affordable prices. Every year that I returned, yes tourism increased, but not at some drastic rate. And definitely not with the same swiftness that rental prices increased. But I experienced the crunch of rising prices as well through more expensive Airbnb rentals.
From the data, after rental prices had already reached an apex, we see that mid-2024 saw a dramatic increase in tourism to Mexico. I suspect social media has something to do with this. I can’t log in without seeing some influencer talk about how amazing CDMX is and why you should visit, or even move there! And although the cost of living in Mexico City is more pricey than it was, it’s still more affordable than many cities in the U.S.
CDMX was already an expensive place to live in Mexico. The city rent average was $1100 USD/month and at least 5 of the the 16 alcaldías that make up the city had averages above that. This is what happens with cities. This is a complex issue, and so a definitive answer is not possible. But I suspect that rents were going to rise regardless of gringo tourists, although I’m sure they exacerbate the situation.
At the core of all this we tend to think of this as a gentrification issue. But these areas under dispute are not poor urban areas. They were already expensive and already vibrant neighborhoods. Unfortunately they now have to contend with the different cultural preferences and attitudes of an increased influx of gringos who visit. And this is a different topic than that of affordability.
Gringos and Growth
As someone who fell in love with Mexico City not just for its beauty but for its spirit, I want to respect what already existed before me, even as I take up space within it. I used to hate when a local friend in CDMX would call me a gringo. To me, gringos are white foreigners and generally culturally insensitive/tone-deaf. So I felt that I definitely shouldn’t be lumped in with them. But I understand that my US dollars afford me the same privileges that theirs do when I visit the country. And that tourists and digital nomads like myself can contribute to rising demand and a higher cost of living in Mexico City. But those forces are woven into the much larger threads of capitalism.
I just hope that there is a way to find a middle ground. Where people like me can continue to learn about and enjoy the city, the culture, and the people while staying curious and compassionate, and of course respectful. Where rents and short-term stay properties alike don’t experience unchecked price growth. And I hope that we all stay aware of what’s changing, what’s at stake, and that we’re intentional about how we move in this world as our actions affect change.
Data Sources
https://www.inmuebles24.com/noticias/wp-content/uploads/2025/01/INDEX_CDMX_REPORTE_2024-12.pdf
The author discusses a very real problem not just in Mexico but in areas around the world. How is American tourism spoiling areas for local populations that have existed for generations? Are wealthy white Americans at all sensitive to the destruction that accompanies the mighty American dollar? Is there any way to rectify this damage before it gets even worse? These are questions that we need to consider before we traipse through the six other continents.