Renting is the only solution for young Latin Americans

RENTING IS THE ONLY SOLUTION FOR YOUNG LATIN AMERICANS

SurEconomics staff, August 2026

In 1995, a young professional in Mexico City, Bogotá or Buenos Aires needed an average of 7 years to save up the down payment on an apartment.

Today, the same goal requires 24 years of full salary without eating or spending a single cent.

Over the past five years, the price per square meter in Latin American capitals has soared 140%, while the real wages of university graduates have barely grown a mere 12%.

As a result of the wide gap between housing prices and wages, a first "renter generation" is emerging in the region's history.

A clear gentrification is under way in some residential areas of Medellín or Mexico City, where 38% of homes have been withdrawn from the sales market to be operated on rental or short-stay tourist lodging platforms (RBMB).

A young professional now devotes up to 55% of monthly income solely to paying rent. With no capacity to save and no assets to serve as collateral for a future loan, young people are being shut out of any possibility of building basic wealth through home ownership.

Sources

·       IDB. Rentals on Offer: Real Estate Market and Urban Gentrification in LatAm, 2025.

·       El País. "The Rental Drama in Latin American Capitals," February 18, 2026.

·       Bloomberg Línea. "How Much Does It Cost to Rent in Latin America's Main Cities?" May 10, 2026.