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Mexico City Opens Consultations on Draft Rent-Cap Law to Address Gentrification

Public consultations are under way on a 14-point plan that caps rents at inflation, prioritizes public housing, regulates short-term rentals.

A demonstrator kicks in a bank storefront window at the end of peaceful protest that turned violent against gentrification, as the increase in remote workers has risen prices and increased housing demand in neighborhoods like Condesa and Roma, in Mexico City, Friday, July 4, 2025. (AP Photo/Aurea Del Rosario)
Overtourism In Mexico: Locals Protest Against Tourist Influx; Here's How You Can Be A Responsible Traveller. (Image: Canva)
Hundreds of people demonstrated in Mexico City against gentrification that they blamed on foreign visitors

Overview

  • Mexico City authorities have launched public consultations on a 14-point anti-gentrification plan to curb housing displacement.
  • The draft law would tie annual rent increases to the inflation rate and introduce a fair-rent framework for tenants.
  • Short-term rental platforms such as Airbnb would be subject to stricter limits to ease pressure on Condesa and Roma housing markets.
  • The proposal includes expanded public housing in central neighborhoods and the creation of an agency to enforce rent controls and penalize violators.
  • President Claudia Sheinbaum condemned xenophobic slogans seen in some protests even as city leaders engage directly with anti-gentrification activists.