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Mexico City Under Pressure to Cap Rents and Regulate Short-Term Rentals

Violent anti-gentrification demonstrations have put authorities under scrutiny to enact enforceable housing policies that protect longtime residents.

A demonstrator burns an effigy of U.S. President Donald Trump in Parque Mexico, during a protest 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/Jon Orbach)
A man points to his Mexican ID to prove his nationality as people protest 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/Jon Orbach)
Demonstrators hold posters that read in Spanish ¨Here we speak Spanish, Real Estate Regulation Now¨, during a protest 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/Fernando Llano)
A demonstrator tosses a restaurant chair 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)

Overview

  • On July 4, hundreds marched in central districts such as Roma and Condesa, vandalizing over a dozen businesses and carrying signs like “gringo go home.”
  • President Claudia Sheinbaum condemned the xenophobic elements of the protests while affirming that grievances over rising rents and displacement are valid.
  • Critics including the Mexico City Anti-Gentrification Front blame government failures and lax short-term rental regulations for driving up housing costs and displacing locals.
  • The U.S. Department of Homeland Security drew criticism for tweeting that unauthorized immigrants could use the CBP Home app to join the Mexico City protests.
  • Authorities now face mounting calls to enforce the 180-night cap on short-term rentals, implement rent controls and accelerate affordable-housing projects before the 2026 World Cup.