One of the most fundamental interesctions of economic relations, social justice, human rights and dinigity inside of the capitalist framework is housing. What should be a basic human right is contended and treated as a commodity to be bought, sold, rented and speculated with for the purpose of profit. This distorts its use function and serves as a tool to exacerbate inequalities, which shape the perception and fighting power of individuals and communities.
Housing as a Commodity:
In the capitalist framework, housing is supposed to be determined by supply and demand. This simplistic view of the problem is in line with the ruling class’ mythology of much of the basic necesities of existence that have ended up commodified (i.e. food). A lot of effort is put into blaming the government for regulating too little or too much of the housing market. When in fact it is baked into the system itself this enourmous line of dominos which culminate in the current climate in which everything in real estate is unafforable. The rules and regulations (or lack thereof) result in the pursuit of the profit motive over social needs. The result is Financialization, housing has become a vehicle for speculative investment, and not a way to satisfy one of the most basic of human needs. This leads to inflated prices, gentrification, housing “shortages” not only in the most desirable urban areas, but this has spread to secondary population centers as well, as we’ll see in the case of Bucerias, Nayarit.
As one of the ways of reinforcing class divisions, excluding the lower income bracket of the population from accesing secure and affordable housing, landlords and property developers often neglect maintenance, impose rent increases above that would make the devil shudder, or engage in evictions through legal structures. These tactics are more aggresive in large population centers like Guadalajara and Mexico City. They have become a hub for immigrants from the imperial power centers to take shelter from their own failing economies (and failed housing projects).
Bucerias Real Estate:
Banderas Bay with all of its economic zones presents a different flavor of housing crisis. It has been well studied how turism areas like Hawaii and Puerto Rico hurt local (and indigenous) populations while making them dependent on that same tourist economic activity. This descending spiral exarcerbates itself by the addition of external investment and tourism dynamics. In the past decades, these areas have suffered a surge in real estate development geared towards selling properties to foreigners and middle-class investors from larger Mexican cities. The local population, specifically the working class that take care of the tourism mechanism (hotels, touring, restaurants, etc…) have found that they are reliant on this industry, which paradoxically prices them out of affordable housing.
Back in the 70’s and 80’s, when foreign tourists first found that Puerto Vallarta homes for sale where extremely affordable comparable to their national vacationing spots, a new economic gear started turning which started to reshape and continues to do so in the present time.
Even affordable housing projects supported by (INFONVIT) have now become the target of foreign investment when they are located in what are now prime tourist areas.
Simultaneously, middle-class investors from major Mexican cities, drawn by the promise of rental income or property appreciation, further drive up prices in desirable locations.
What to do about real estate in Mexico?
Housing crisis all around the world underscores the complexity of a planned economic project. But as the name implies, it is planned, and we must ask our peers and our political representatives, what to do about it.
As it has been planned (and left to its own devices), addressing these challenges requires that we rethink and prioritize the community needs.