Last week, hundreds of demonstrators filled the streets of Mexico City. Their message was clear: rising housing costs are driving locals out of their neighborhoods—and they want it to stop. But amid peaceful protests, acts of vandalism and anti-foreigner graffiti sparked a wider conversation on gentrification, inequality, and xenophobia.
Messages like “Get out of Mexico” and “Kill a gringo” appeared on walls and storefronts in the city’s more affluent areas. These incidents, though not representative of the entire protest, prompted a strong response from Mexican President Claudia Sheinbaum.
“No to discrimination, no to racism, no to classism, no to xenophobia,” Sheinbaum said at a press conference. “All human beings are equal.”
The protest centered on the growing cost of living in Mexico’s capital. Many residents blame the surge in prices on foreigners, particularly Americans and Europeans, who have moved in as remote work becomes more common.
Frente Anti Gentrificación Mx, one of the groups behind the demonstration, pushed back against accusations of xenophobia. “We are not against migration,” spokesperson Yessica Morales told CNN. “We are against violence as a government model.”
Morales pointed to data showing that housing costs in Mexico have risen by 286% since 2005, while real wages have dropped by 33%. These figures come from the National Institute of Statistics and Geography and the Federal Mortgage Society.
Activists say neighborhoods like Roma and Condesa have become hubs for foreign renters and tourists, often pricing out longtime residents. Airbnb alone has over 26,500 listings in Mexico City, many located in these areas.
Experts caution against blaming foreigners alone. “Gentrification is based on inequalities,” said activist and lawyer Carla Escoffié. “Not all foreigners gentrify, and not everyone who gentrifies is a foreigner.”
Still, the arrival of digital nomads and the popularity of short-term rentals have accelerated the problem. Airbnb argues it contributes positively to the local economy, citing more than $1 billion in generated income last year. The company says more than half of its hosts use earnings to stay in their homes.
In 2022, Mexico City partnered with Airbnb and UNESCO to promote the capital as a creative tourism and digital nomad hub. At the time, Sheinbaum—then mayor—framed it as an economic boost.
But locals saw it differently. Many viewed the move as another sign that the city was prioritizing profits over people. With the 2026 World Cup on the horizon, some fear the government will favor business interests over community needs.
The trend isn’t unique to Mexico. Cities like Barcelona and Lisbon have also seen backlash over gentrification and short-term rentals. In Barcelona, officials plan to eliminate over 10,000 short-term rental licenses by 2028.
“The tourist industry has enormous negative impacts,” said Adrián Trinidad of Barcelona’s tenants’ union. He said landlords are evicting long-term renters to make way for more profitable daily stays.
Back in Mexico City, new regulations have tried to address the issue, but activists say they’re not enough. As housing prices soar and wages stagnate, the fight for fair living conditions continues.
“We’re in a critical state,” said Morales. “The question is: who is the city really for?”
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