After Protests, Mexico City Proposes Rent Caps

Mexico City is rolling out a plan to rein in housing costs after protests over gentrification boiled into the streets of tourist-favored neighborhoods.

Mayor Clara Brugada said the city will pursue new rent control regulations, including caps on increases pegged to inflation and a list of “reasonable rental” proposals, as part of a broader legislative push to promote affordability, the Associated Press reported.

The initiative follows a protest that began peacefully but escalated into broken storefronts, anti-foreigner graffiti and clashes with police near Condesa’s Parque México and the U.S. Embassy.

The protest, organized by neighborhood groups in Roma, Juárez and other gentrifying areas, decried rising housing costs that many link to the city’s promotion of “digital nomads” and short-term rentals. Demonstrators held signs reading “Housing to live in, not to invest in” and “Gringo: Stop stealing our home,” targeting foreign renters and investors whose dollar- and euro-backed purchasing power has helped send rents soaring in central neighborhoods.

Rents in areas like Polanco, Roma and Santa Fe have climbed as much as 30 percent over the last five years, fueled by remote workers, Airbnb conversions and the city’s 2022 tourism agreement with Airbnb and UNESCO.

Brugada acknowledged the problem but denounced the “xenophobic” tone of some protests, saying “no one should be able to say ‘any nationality get out of our country’ even over a legitimate problem like gentrification.” Still, her administration is pushing for a bill that includes input from residents and aims to protect tenants from being priced out.

The backlash reflects a larger tension seen in global gateway cities where housing markets are reshaped by mobile wealth and digital-era mobility. Cities like New York and Barcelona have passed tougher restrictions on short-term rentals, but Mexico City has, until now, largely relied on market forces.

It remains unclear how strictly the proposed rent caps will be enforced or whether the legislation will address the role of short-term rental platforms. But with more protests being planned and rents continuing to rise, Brugada’s administration appears under pressure to act fast.

— Judah Duke