The cost to rent homes and apartments in Mexico has soared by more than 28% since early 2020, driven by the COVID-19 pandemic’s surge in remote working demand.
Mexico City is now the most expensive rental location in the country, followed by the State of Mexico and Nuevo León.
In Mexico City, the rent for a swanky home in an upscale neighborhood can be as high as 50,000 Mexican pesos (US$2,794) per month, and for an apartment, more than 40,000 pesos (US$2,235) per month.
The pandemic led many employees to move to houses further away from the hustle and bustle of the city center. Meanwhile, the construction of new buildings has not kept pace with the demand for rentals.
In addition, foreigners, particularly from the United States, have flocked to Mexico City on digital nomad visas. According to the report, more than 60% of residents in Mexico City are now tenants.
Expensive property prices and limited access to credit have made it difficult for many residents to purchase a home.
With the economy recovering and family incomes rising, rental prices look set to continue to rise in the coming years.