In a surprising shift, Mexico City has dethroned New York as the world's most expensive city for expatriates, according to recent reports. The Mexican capital's skyrocketing housing prices and rising inflation have propelled it to the top of the list, leaving behind traditionally costly urban hubs like New York and Hong Kong.
Why Mexico City?
The surge in living costs is largely attributed to an influx of foreign workers and digital nomads, driving up demand for housing. Rental prices in upscale neighbourhoods such as Polanco and Condesa have nearly doubled in recent years, pushing locals out of the market.
Global Cost of Living Crisis
This shift reflects broader economic trends, including post-pandemic inflation and currency fluctuations. While New York remains expensive, Mexico City's rapid cost escalation has caught many by surprise, particularly given its historically lower cost of living compared to other major cities.
Impact on Residents
Local residents are feeling the pinch as gentrification accelerates. 'We can no longer afford to live in our own city,' lamented one long-time resident. Meanwhile, expatriates face rising expenses in everything from groceries to private schooling.
Experts warn that without policy interventions, the affordability crisis could worsen, potentially stifling Mexico City's economic growth and cultural diversity.
