City housing shortage, not gentrification, drives prices skyward as planning lags behind demand and foreigner influence remains minimal.
High real estate costs in Mexico City stem from a deep and persistent housing shortage—exacerbated by land constraints, tangled regulations and speculative investment—rather than by the presence of foreign residents. Despite headlines blaming “gentrification,” foreign-born residents make up just over 1 % of the city’s population, while planners estimate a gap of some 500 000 homes to meet current demand.
Mexico City’s housing deficit outweighs expat demand . . .
