Tulum Rentals Crash 50% Amid Tourism Slump & Sargassum

Tulum, Mexico — A sharp decline in tourism, an unprecedented influx of sargassum on beaches, and an oversaturated real estate market have triggered a historic drop in rental prices in Tulum, with reductions of up to 50% for apartments, studios, and homes. Properties that rented for 30,000 pesos a year ago now barely fetch 15,000 pesos, marking one of the worst crises the sector has faced in recent years.

Three Key Factors Behind the Decline

Carlos Montes Gil, vice president of the Mexican Association of Real Estate Professionals (AMPI) in Tulum, identified three primary factors driving the price collapse: dwindling tourism, environmental damage, and an excess of housing supply.

“When analyzing rental prices, there are three variables at play,” explained the specialist.

The first is the decline in tourist arrivals, attributed to economic uncertainty in the United States, stricter immigration policies under the Donald Trump administration, and growing perceptions of insecurity in the region. Compounding the issue is the most severe sargassum season in years.

Montes Gil stated that the seaweed invasion has led to numerous cancellations on platforms like Airbnb and has also impacted long-term rentals by reducing the presence of extended-stay tourists and service providers.

However, the most critical factor is the oversupply of housing. Currently, there are 575 active real estate projects in Tulum and over 11,000 vacant units in inventory, sparking fierce competition among property owners desperate to rent at any cost—even at prices far below previous averages.

Sector on High Alert

The situation has put the real estate industry on edge, as many property owners face months without income while still needing to cover mortgage payments and maintenance costs.

To prevent properties from remaining vacant or deteriorating, some landlords are offering flexible contracts, promotions, or aggressive price adjustments.

While a slight rebound is expected once the sargassum season ends, experts warn that the structural issues plaguing Tulum’s real estate market will persist. The rapid growth bubble in the region is beginning to reveal its fragility, raising urgent questions about the need to rethink Tulum’s urban and tourism development model.