Mexico City Takes Action to Combat Gentrification and Protect Local Residents

Mexico City's government has pledged to fight gentrification after protests accused foreigners of making the city more expensive and displacing longtime residents. The plan aims to control rent increases, establish a "reasonable rental price index," and strengthen regulations on short-stay housing rentals. Mayor Clara Brugada also promised to protect local merchants with government incentives. A new march against gentrification has been called for Sunday.

Mexico City's government has vowed to tackle gentrification following recent protests, which accused foreigners of driving up housing costs and displacing long-term residents. The city's mayor, Clara Brugada, announced a comprehensive plan to address the issue, including measures to control rent increases, establish a reasonable rental price index, and strengthen regulations on short-stay housing rentals.

The plan, presented by Mayor Brugada, aims to stabilize rental prices in areas experiencing real estate stress. It seeks to prevent the displacement of people with fewer resources in neighborhoods where wealthy residents are increasingly settling. The city will also propose a law on fair, reasonable, and affordable rents, according to Brugada [2].

The plan comes in response to a recent march against gentrification in neighborhoods Roma and Condesa, where demonstrators vandalized tourist areas. Mayor Brugada acknowledged the need to address gentrification but condemned the xenophobic sentiments expressed during the protest [2].

In addition to controlling rent increases, the plan will target short-stay housing rentals on digital platforms like Airbnb. Last year, Mexico City's legislators approved a reform to limit real estate rentals on such platforms, banning landlords from renting out their properties for more than half of the year [2].

The government's plan also includes incentives to protect local merchants, aiming to strike a balance between addressing gentrification and promoting inclusive growth. A new march against gentrification has been scheduled for Sunday, reflecting the ongoing public debate over housing access and urban inequality [3].

Mexico City has been experiencing a significant housing crisis, with an excessive increase in house rents making it difficult for many residents to live in central areas. The city's population has been pushed to the periphery, with 23,000 families leaving annually due to high rental costs [1]. The influx of digital nomads, particularly since the COVID-19 pandemic, has exacerbated this issue, although its full impact remains to be seen [1].

The government's plan to combat gentrification is a step towards addressing the structural problems contributing to housing inequality in Mexico City. As the city continues to grapple with these challenges, investors and financial professionals will be closely watching the implementation and effectiveness of these measures.

References:
[1] https://www.theguardian.com/world/2025/jul/15/backlash-against-mexico-city-gentrification-echoes-global-anger-at-overtourism-and-rising-rents
[2] https://www.bloomberg.com/news/articles/2025-07-16/mexico-city-pledges-to-fight-gentrification-in-condesa-roma-protest-aftermath
[3] https://orinocotribune.com/protests-against-gentrification-erupt-in-mexico-city/