At the time of writing this abstract, the exchange rate between the US Dollar (USD) and the Colombian Peso (COP) is 1 USD = 4,391.52 COP. The COP is weak compared to the USD as the Colombian economy is struggling. Namely, Colombia depends on the exchange of unstable resources, has a history of unreliable political leaders, and is facing a fiscal deficit which generates instability. Adding to the current Colombian economic situation, the majority of the working population receives the current minimum wage of about 1,300,000 COP (295.96 USD) per month. The average cost of a one-two bedroom Colombian home is 1,671,770 COP (376 USD) per month which is more than the average Colombian monthly salary. In tourist cities, such as Medellín, housing is even less affordable for Colombians as many Americans purchase homes with their stronger currency for tourist Airbnbs or VRBOs.

Current literature explores the economic and real estate situations in the US and Colombia. However, there is a need to explore the connection between the exchange rate and the Medellín housing crisis. This project will evaluate the effect of the USD to COP exchange rate on the real estate purchasing power of Colombians in Medellín by analyzing 10 houses in each Medellín zone and their average affordability. Each house will be evaluated based on the following factors: housing type, number of bedrooms/bathrooms, area in square feet, price in COP and USD, zone, commune, neighborhood, class, and salary. The expected results include discovering a lack of affordable housing for the average Colombian in each zone and feasible ability of Americans in comparable economic situations to purchase homes in each zone. The results will be discussed in terms of creating awareness and encouraging discussions of solutions for the Medellín real estate sector.