Rents Soar 50% in Mexico’s Top Beach Towns Due to Gentrification

Quintana Roo, Mexico — Rental prices in central areas of Cancún, Playa del Carmen, and Tulum have surged by more than 50% over the past five years, fueled by gentrification and the rise of remote work. The trend has displaced long-time residents, forcing them to relocate to peripheral neighborhoods often lacking basic services.

Rising Costs and Displacement

In some cases, monthly rents have jumped from 8,000 pesos to over 13,000 pesos, while others saw increases from 6,000 pesos to more than 14,000 pesos. The phenomenon has particularly affected central zones, where original inhabitants are being replaced by higher-income earners, including foreign digital nomads.

Carlos Ajich Veloz Avilés, an urban planning expert from the National Autonomous University of Mexico (UNAM), explained, "This is a process where lower-income residents are pushed out of central areas by wealthier populations, often foreigners." He noted that digital nomads from the U.S. are drawn to the region because their salaries afford them a better quality of life than in their home countries.

Government Response and Urban Challenges

Hugo Alday Nieto, president of the Sustainable Urban Development Commission in Quintana Roo’s state congress, emphasized the need for municipal governments to regulate land-use changes. "We must ensure that residential zones remain residential and avoid commercial conversions in areas without proper infrastructure," he said.

Alday Nieto stressed the importance of local representatives, such as city council members, defending residential zoning to prevent further displacement.

Case Study: Colosio Neighborhood in Playa del Carmen

The Luis Donaldo Colosio Murrieta neighborhood, originally an informal settlement over 30 years ago, has seen rents double from 3,000 pesos to over 6,000 pesos per month. The area’s potential for hospitality and short-term rental businesses has attracted large-scale developments, displacing longtime residents.

Veloz Avilés warned that without government intervention, the trend will continue, pushing locals to outlying areas like western Playa del Carmen. He called for policies to curb land speculation, stating, "Urban land should not be treated solely as a capital investment but as a public good ensuring housing rights."

Evictions and Housing Insecurity

In Colosio, another issue exacerbates the crisis: evictions of residents unable to pay mortgages tied to properties once managed by the defunct Desarrolladora de la Riviera Maya (Derimaya). These properties are now acquired by real estate firms constructing condominiums, further driving up rents.

Marcos Antonio López Díaz, president of the Vecinos Unidos association, criticized the lack of government support for working-class families. "Neither federal nor state authorities have established mechanisms to subsidize housing for those in need, leaving real estate conglomerates to dominate the market," he said.

Social Consequences

The displacement has created social tensions in peripheral areas, where displaced families struggle with inadequate services. While similar protests to those in Mexico City have not yet emerged in Quintana Roo, Veloz Avilés noted that the region’s familiarity with tourism may delay such reactions.

The situation underscores the urgent need for policies balancing urban development with housing affordability to protect vulnerable communities.