No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeNewsRecord Tourism Numbers Challenge Costa Rica's Local Housing Market

Record Tourism Numbers Challenge Costa Rica’s Local Housing Market

The Costa Rican Tourism Institute (ICT) reported a 14.5% increase in visitation from January to June of this year compared to last year’s numbers, with the country receiving more than 1.5 million tourists during the first half of 2024.

Undoubtedly, these figures translate into more jobs for the tourism sector, which is one of the most important economic forces driving the country. Thousands of families in the seven provinces depend on this activity for their livelihoods; in many cases, especially in rural areas, it is often the only source of employment.

While it is important to maintain tourism activity, the country also faces major challenges in this area. In several regions, mainly Guanacaste, the massive arrival of tourists and foreigners has caused rent and land prices to rise significantly, preventing locals from accessing them and forcing them to move.

For example, Nosara concentrates 70% of the construction in the canton of Nicoya. The average cost of each square meter is $3,495, and it is estimated that rentals on platforms such as Airbnb generate around $45,000,000 per year. This data comes from the Observatory of Tourism, Migration, and Sustainable Development (OBTUR).

“Nosara exemplifies this dynamic best. Relatively small houses (two bedrooms, two floors, and essential spaces) start at $750,000 upwards. There are even lots without houses that go for around $15 million; it is a real estate market that operates practically without regulation,” explained Arturo Barboza from OBTUR.

Although this is mostly seen in Guanacaste, other small towns such as Monteverde do not escape the problem. Locals indicate that they must spend almost half of their salary on rent if they wish to stay in thei hometown, Monteverde. Most have been forced to move to other towns as prices have risen beyond their economic capabilities.

Additionally, there is little construction for housing because it is more profitable to build tourist apartments, cabins, or hotels for tourists or digital nomads.

The government faces a major challenge in finding a balance so that the tourism sector can continue to strengthen without undermining the welfare of Costa Ricans. The municipalities and central government must design policies to address this complex scenario. However, this isn’t something that has been a priority for neither. 

Trending Now

The Hidden Costs of Living in Costa Rica: Tariffs, Monopolies, and More

‘Tariffs’ is one of the buzzwords of 2025. Defined as taxes imposed by one country on goods imported from another country, tariffs are essentially...

Gold Cup 2025: Costa Rica, Mexico and Canada Aim for Glory

While other CONCACAF teams have their sights set on the 2026 World Cup, Mexico, Costa Rica, and Canada are raising the stakes by targeting...

Costa Rica Continues Investigation into Miller Gardner’s Death

Costa Rican authorities are still investigating the tragic death of Miller Gardner, the 14-year-old son of former New York Yankees outfielder Brett Gardner, nearly...

Panama Police Clash with Protesters Over Pension Reform Near Costa Rica Border

Police and protesters clashed in Panama on Saturday during an operation to clear a highway near the Costa Rican border, where teachers and Indigenous...

Costa Rica’s Tortuga Island Hits Coral Milestone in Marine Restoration Push

Costa Rica’s Tortuga Island is making waves in marine conservation. On World Oceans Day the National Learning Institute (INA), State Distance University (UNED), and...

Costa Rica’s Ojochal: From Farms to Luxury Tourism Hub

Ojochal, a small town in between the Pacific Ocean and the Fila Costeña in Costa Rica’s Osa, isn’t the sleepy agricultural community it once...
spot_img
Costa Rica Tours
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Rocking Chait
Costa Rica Travel

Latest News from Costa Rica