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Rent-seeking middle classes and the short-term rental business in inner-city Lima

Author

Listed:
  • Mirtha Lorena del Castillo

    (University of Amsterdam, the Netherlands)

  • Christien Klaufus

    (University of Amsterdam, the Netherlands)

Abstract

Between 2007 and 2017, Lima experienced an unprecedented growth of the construction sector and an increase in high-rise condominiums. Urban land as a strategic resource has altered the spatial configuration of Lima’s central districts. This paper presents the results of a case study of Barranco, a central and emblematic district of Lima that underwent an intense real estate boom. In our assessment, we connect the recent touristification and gentrification debates to develop a new pattern of Latin American gentrification. We argue that Barranco’s consolidation as a tourist destination, along with the relaxation of local construction policies, has led to the development of one-bedroom apartments in high-rise condominiums destined mainly to be rented out to tourists and other types of floating population. This urban restructuring model has created new business opportunities for what we call a rent-seeking middle class, keen to invest in real estate as an alternative means to increase their income. By way of discussion, we argue that the case of Barranco exemplifies a new trend in Latin American gentrification which is not characterised by an influx of the urban middle class into central areas, nor by a massive physical displacement of lower-income residents, but by the growing purchasing power of a wealthier middle-class group investing in the short-term rental business in combination with other enabling factors.

Suggested Citation

  • Mirtha Lorena del Castillo & Christien Klaufus, 2020. "Rent-seeking middle classes and the short-term rental business in inner-city Lima," Urban Studies, Urban Studies Journal Limited, vol. 57(12), pages 2547-2563, September.
    • Handle: RePEc:sae:urbstu:v:57:y:2020:i:12:p:2547-2563
    DOI: 10.1177/0042098019881351
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    References listed on IDEAS

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    1. Agustín Cócola Gant, 2016. "Holiday Rentals: The New Gentrification Battlefront," Sociological Research Online, , vol. 21(3), pages 112-120, August.
    2. G A Jones & A Varley, 1999. "The Reconquest of the Historic Centre: Urban Conservation and Gentrification in Puebla, Mexico," Environment and Planning A, , vol. 31(9), pages 1547-1566, September.
    3. Christien Klaufus & Paul Van Lindert & Femke Van Noorloos & Griet Steel, 2017. "All-Inclusiveness versus Exclusion: Urban Project Development in Latin America and Africa," Sustainability, MDPI, vol. 9(11), pages 1-15, November.
    4. Philipp Schäfer & Jens Hirsch, 2017. "Do urban tourism hotspots affect Berlin housing rents?," International Journal of Housing Markets and Analysis, Emerald Group Publishing Limited, vol. 10(2), pages 231-255, April.
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    Cited by:

    1. Christopher B Goodman & Megan E Hatch, 2023. "State preemption and affordable housing policy," Urban Studies, Urban Studies Journal Limited, vol. 60(6), pages 1048-1065, May.
    2. Catalina Ortiz, 2024. "Writing the Latin American city: Trajectories of urban scholarship," Urban Studies, Urban Studies Journal Limited, vol. 61(3), pages 399-425, February.

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