Mexico City residents are fed up with gentrification

Summary

Marketplace Morning Report — Episode Summary

Episode Title: "Mexico City residents are fed up with gentrification"
Date: September 10, 2025
Host: David Brancaccio
Guest Journalists: Susan Schmidt, Savannah Peters, Will Grant (BBC correspondent)
Length: ~12 minutes

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Overview

This episode of Marketplace Morning Report examines pressing economic stories, focusing particularly on the impact of gentrification and short-term rentals in Mexico City. It covers the displacement of long-term residents due to rising rents and foreign demand, with on-the-ground commentary from affected locals and tourists. The episode also provides a brief update on U.S. wholesale inflation data, small business employment challenges, and major corporate news.

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Key Discussion Points & Insights

1. U.S. Economic Update: Inflation and Interest Rates

[01:21 – 03:03]

• Wholesale Inflation: Wholesale prices fell slightly in August, surprising analysts. Senior portfolio manager Susan Schmidt discusses the implications for Federal Reserve decisions.
  • Investor Expectations: "Around 90% of investors at this point expect the Fed to drop rates next week by a quarter of a percentage point." (Susan Schmidt, 01:32)
  • Stock Market Reflections: The anticipated rate cut is already priced into stocks, influencing market behavior.
• Apple Product Announcement: Apple's latest event did not significantly impact its stock.
  • "No, definitely a ho hum... People are waiting for Apple to join the AI race and really make a mark." (Susan Schmidt, 02:34)

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2. Small Business Labor Market Challenges

[05:19 – 06:40]

• Hiring Difficulties: Small businesses, such as Private Eye Protection in Georgia and Kirby Lane Cafe in Austin, Texas, continue to face challenges finding reliable and skilled workers despite labor market fluctuations.
  • "Finding the right candidates is challenging." (Jim Jones, Private Eye Protection Owner, 05:27)
  • For restaurants, the market is now so tight they're hiring more teenagers and have intensified training on soft skills like small talk and eye contact.
  • "It's the little things like teaching them to make eye contact, to make small talk. None of that is a thing that anyone really comes in with." (Roseanne Garza, HR, 06:05)

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3. MAIN STORY: Gentrification and Displacement in Mexico City

[06:40 – 10:21]

The Story & Local Activism

• Short-Term Rentals and Displacement: Activists report that up to 20% of homes in some neighborhoods (like La Condesa) are now short-term rentals for foreigners.

  • Activist Sergio Gonzalez describes the situation as "an urban war… What's in dispute is the ground itself." (Sergio Gonzalez, 07:29)
  • “The first apartment I rented here in 2007, today that same apartment costs more than 10 times as much. It’s an outrage. It’s pure speculation.” (Sergio Gonzalez, 07:38)

• Personal Displacement Stories: Erika Aguilar’s family was forced out after 45 years in La Juarez when the building was suddenly scheduled for conversion into luxury apartments.

  • “March 2017, officials came to every apartment in the building and told us we had until the end of the month to vacate… You can imagine my mother's face, she says, she’d lived here since 1977.” (Erika Aguilar, 08:38)

The Tourist Perspective

• Foreigners Moving In: Visiting tourists from the U.S. are attracted to the area’s walkability and lifestyle, some even contemplating moving permanently.
  • “Obviously we don't want to contribute to gentrification, so I think as long as you treat those around you with respect and you try to be a part of the community, I think it goes a lot further than trying to make it your own. Learn the language.” (Alexis & Richard Brooks, 09:33)

Community Response & Advice

• Protests and Social Tensions: Recent protests against gentrification have turned violent, targeting businesses perceived as symbols of foreign influence. Displaced residents urge respectful integration rather than anti-foreigner radicalism.
  • “Learn Spanish and pay your taxes.” (Erika Aguilar, 10:15)

Government Response

• Policy: The city government claims it will regulate rents and expand affordable housing, though residents express skepticism.

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4. Notable Quotes & Moments

• "We are definitely facing what we call an urban war. What's in dispute is the ground itself."
  — Sergio Gonzalez, activist (07:29)
• "The first apartment I rented here in 2007, today that same apartment costs more than 10 times as much. It's an outrage. It's pure speculation."
  — Sergio Gonzalez (07:38)
• "March 2017, officials came to every apartment in the building and told us we had until the end of the month to vacate... You can imagine my mother’s face, she’d lived here since 1977."
  — Erika Aguilar (08:38)
• "We don't want to contribute to gentrification... treat those around you with respect and you try to be a part of the community. Learn the language."
  — Alexis & Richard Brooks, U.S. tourists (09:33)
• "Learn Spanish and pay your taxes."
  — Erika Aguilar (10:15)

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Timestamps for Key Segments

• Inflation/Interest Rate Outlook: 01:21 – 03:03
• Apple Product Reaction: 02:23 – 03:03
• Small Business Labor Issues: 05:19 – 06:40
• Gentrification in Mexico City: 06:40 – 10:21

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Tone and Style

• The reporting remains direct and conversational, blending economic insights with vivid human stories. There’s empathy for affected residents and a candid examination of foreign impact.

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Takeaways

• Mexico City neighborhoods are facing acute gentrification pressures from short-term rental demand and foreigners earning higher incomes.
• Long-term residents are experiencing mass displacement, local identity is at risk, and tensions—sometimes violent—are surfacing.
• The city government acknowledges the issue but residents and activists voice skepticism about real change.
• U.S. markets watch inflation and interest rates, with a likely Fed rate cut on the horizon.

This episode provides a succinct but impactful look at how global economic trends—travel, remote work, investment—are reshaping cities in both positive and deeply challenging ways.

Transcript

[Susan Schmidt]

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[David Brancaccio]

This podcast is supported by Odoo. Some say Odoo business management software is like fertilizer for businesses because the simple, efficient software promotes growth. Others say Odoo is like a magic beanstalk because it scales with you and is magically affordable. And some describe Odoo's programs for manufacturing, accounting, and more as building blocks for creating a custom software suite. So Odoo is fertilizer magic beanstalk building blocks for business. Odoo exactly what businesses need. Sign [e-mail] that's od o o.com a sign of tamer Inflation I'm David Brancaccio in Los Angeles. Tomorrow we'll get the consumer inflation reading for August. Today it was wholesale inflation, present surprise when it unexpectedly went down slightly. Let's check in with Susan Schmidt, senior portfolio manager at Exchange Capital Resources.

[Susan Schmidt]

Good morning.

[David Brancaccio]

So a little surprise there. Wholesale prices actually went down just a tad. How does that factor into the big interest rate decision for next week from the central bank?

[Susan Schmidt]

Well, they went down, but as you said, just a tad. And so far it doesn't look like that's changing. Investor anticipation over what will happen next week. Around 90% of investors at this point expect the Fed to drop rates next week by a quarter of a percentage point. And that is already being reflected in stock.

[David Brancaccio]

Well, how do you know that? 90%, Susan? I mean, is it like a sports book on whether the Fed will move interest rates down a quarter of a percentage point?

[Susan Schmidt]

Well, not exactly a sports book. It's not posted in Las Vegas. But we do have ways of seeing what's expected. And effectively we do have that percentage, the odds on what's going to happen, the anticipated odds. And so we can look at that and we can see how investors are leaning. And that's also reflected in stock prices in the market.

[David Brancaccio]

One of the most valuable companies by market capitalization is Apple Computer. Their big product announcement was yesterday. Did not exactly blow the hair back of the stock market.

[Susan Schmidt]

No, definitely a ho hum. Such a difference than 10 years ago when Apple reported their new product line and that would move the stock. We saw very little action in stock price yesterday after the close. Not anticipated to see a lot of movement based on this new product lineup. People are waiting for Apple to join the AI race and really make a mark. Talking about what their product they haven't yet. That's what investors are waiting for, and that's what will ultimately move the stock price.

[David Brancaccio]

All right, there's a little AI in there. They're looking for big AI in there. Susan Schmidt, portfolio manager at Exchange Capital Resources. Thank you, thank you.

[Susan Schmidt]

Foreign.

[David Brancaccio]

This is the story of the One As a maintenance supervisor at a manufacturing facility, he knows keeping the line up and running is a top priority. That's why he chooses Granger. Because when a drive belt gets damaged, Grainger makes it easy to find the exact specs for the replacement product he needs. And next day delivery helps ensure he'll have everything in place and running like clockwork. Call 1-800-GRAINGER click granger.com or just stop by Granger for the ones who get it done. Hey, I'm Dr. Z and I'm a neurosurgeon. So that means long hours, early rounds, late nights, and everything in between. And through it all, I wear figs because they're built for what I do. Through the chaos, through the hours, and through whatever the day throws at me. They do their job so I can do mine. They're comfortable when it counts and functional when I need them the most. So where do you wear your figs? On shift? On call? On the couch in the break room, listening to this podcast wherever it is, they fit right in. And now listeners of this podcast can get 15% off their first order. Just head to wherefigs.com and use code FIGSRX at checkout. That's wherefigs.com code FIGSRX. We've been reporting new data showing a weaker job market both in recent months and over the last year. Given statistical revisions today, some countervailing data, a survey finds more optimism among small businesses as summer draws to a close. Smaller companies are collectively expecting higher sales. Also, there's the expectation of lower taxes after Republicans pass the big spending and tax bill in July. But despite the weaker job market, people who run smaller firms report it's still a challenge to find people with the talents they need. Marketplace's Savannah Peters reports.

[Susan Schmidt]

Private Eye Protection is a small security company in Duluth, Georgia, a suburb of Atlanta. It's pretty much always hiring.

[David Brancaccio]

I mean, we tend to see a good flow of candidates finding the right candidates is challenging.

[Susan Schmidt]

Owner Jim Jones employs about 60 full time and 20 part time security guards. He'd like to grow that roster and his business.

[David Brancaccio]

You've got to have a focus and an attentiveness to reliability, showing up on time, things like that and finding individuals.

[Erica Aguilar]

In the talent pool that we operate in can be challenging at times.

[Susan Schmidt]

With starting wages in the teens, Jones is competing with the service industry for quality workers. But things aren't totally rosy there either. There are some things that we've had to add to training to really get people to be more guest focused. Roseanne Garza heads up HR at Kirby Lane Cafe, a small chain of diners based in Austin, Texas. It's the little things like teaching them to make eye contact, to make small talk. None of that is a thing that anyone really comes in with. Garza says that's in part because the market for restaurant workers has gotten really competitive and Kirby Lane is hiring more teenagers than ever. On the bright side, she says the experienced workers she does employ have been sticking around for longer stretches. I'm Savannah Peters for Marketplace.

[David Brancaccio]

Now to a story about wealthier foreigners driving up rental prices and driving out long term residents of Mexico City. There have been demonstrations in that city this summer with some protesters damaging shops and restaurants that cater to tourists. In the popular neighborhood of La Condesa, activists say that as many as one in five homes is now for people who rent shorter term. The city government says it has a plan to regulate rents and build more affordable housing. The BBC's Will Grant reports. For Mexico City.

[Erica Aguilar]

Activist Sergio Gonzalez says in the past decade his group has recorded more than 4,000 cases of forced displacement of long term residents from his neighbourhood of La Juarez alone. He was one of them. We are definitely facing what we call an urban war. What's in dispute is the ground itself.

[Susan Schmidt]

Who does and who doesn't have rights to this ground?

[Erica Aguilar]

The first apartment I rented here in 2007. Today that same apartment costs more than 10 times as much. It's an outrage. It's pure speculation. The Juarez, Roma and Condesa are now so changed in character that they're almost unrecognisable to some of the original residents. Trendy coffee shops, high end restaurants and boutique clothing stores. The growing complaint is that the original character of so many of these communities is being lost in the endless pursuit of the foreigner earning in dollars, euros or pounds. Fueno Nanos, Pibiendo, Neste Sona. No. In La Juarez I met Erica Aguilar, whose family had lived in the same building for 45 years until a knock at the door eight years ago.

[David Brancaccio]

In.

[Erica Aguilar]

March 2017, officials came to every apartment in the building and told us we had until the end of the month to vacate the premises, she explains. You can imagine my mother's face, she says she'd lived here since 1977. Erica now lives almost two hours away by public transport, officially inside the neighboring state. Her old home, which dates to 1921, is now a building site as the new owners convert it into luxury apartments. Combined with the high cost of living in the US the draw of the leafy streets of Condesa is obvious. Quiet, walkable. The park obviously is a great draw to people. It's peaceful. We've really enjoyed it. Alexis and Richard, also Brooks, are on a short trip to Mexico City from Portland, Oregon, with, they say, half a mind to maybe settle here one day.

[Susan Schmidt]

Obviously we don't want to contribute to gentrification, so I think as long as.

[Erica Aguilar]

You treat those around you with respect and you try to be a part of the community, I think it goes a lot further than trying to make it your own.

[Susan Schmidt]

Learn the language.

[Erica Aguilar]

The violence of the anti gentrification protest sparked headlines across Mexico. Branches of Starbucks and banks being smashed up made for images of a sort of anti American class war unfolding on the capital streets. But for displaced resident Erika Aguilar, the radical demonstrators and agitators don't represent her cause. Still, she has advice to anyone planning to relocate to Mexico City. Learn Spanish and pay your taxes.

[David Brancaccio]

Will Grant had that piece. He's with our newsroom partners at the BBC. Also, Novo Nordisk, the maker of the blockbuster weight loss drug Wegovy, now says it's cutting more than 11% of its staff, 9,000 people. Its cash cow is under pressure from rival Eli Lilly's weight loss drug and knockoff competition in Los Angeles. I'm David Brancaccio. It's the Marketplace Morning report from APM American Public Media.

[Susan Schmidt]

The Trump administration is making deep cuts to education research. The cancellation notices.

[David Brancaccio]

When the contract is cut, the study just dies.

[Susan Schmidt]

It's all happening. Just as schools are trying to make use of research to improve reading instruction.

[David Brancaccio]

There would not have been a Science of Reading without the federal funding.

[Susan Schmidt]

It wouldn't have happened. I'm Emily Hanford. On our new episode of what the Trump Cuts Mean for the Science of Reading. Go to your podcast app and follow Soul to Story.