Mexico City Government Head Clara Brugada presented a base reform for the Fair, Reasonable and Affordable Rents Law on Wednesday to address the housing crisis and gentrification. The initiative will unfold in two stages and aims to protect both tenants and landlords. Brugada emphasized regulating rent increases and promoting neighborhood roots.
Clara Brugada, head of Mexico City Government, announced on Wednesday an initial constitutional reform for the Fair, Reasonable and Affordable Rents Law, to be presented to the local Congress. The proposal addresses the housing crisis and seeks to regulate the rental housing market.
The initiative will proceed in two stages. The first will elevate constitutional principles to ensure legal protection for tenants and landlords, including that rent prices cannot exceed inflation. The second will introduce the full law with specific regulatory mechanisms.
Brugada outlined four key points: a policy to significantly increase social and affordable housing supply, particularly for vulnerable groups and youth; establishment of a public institution to promote and defend tenant-landlord rights; a constitutional right to neighborhood roots and community permanence; and policies against gentrification to reduce territorial inequalities.
In her diagnosis, Brugada noted that nearly 2 million people rent in Mexico City, one in four residents. Between 2019 and 2023, rents rose over 30% in some areas, with the poorest households spending up to half their income on rent. In 2020, around half a million were displaced. The Supreme Court recently approved a cap on rent increases.
