Background on Clara Brugada and Her Role
Clara Brugada, the current head of government for Mexico City, has introduced a significant housing initiative aimed at controlling rental prices. As the leader of one of the world’s largest metropolitan areas, Brugada seeks to address rising rents and gentrification that have displaced many original residents.
The Rent Control Plan: Context and Objectives
In response to public protests against escalating rents and real estate speculation, particularly in neighborhoods like Roma, Condesa, and Cuauhtémoc, Brugada’s government launched the “Bando 1” plan. This initiative, unveiled on July 16, 2025, consists of 14 measures to combat gentrification and regulate rents in Mexico City.
Key Measures of the Plan
- Rental Price Index: Creation of a rental price index to stabilize rents in high-pressure real estate zones.
- Regulation of Short-Term Rental Platforms: Implementation of an objective methodology to control short-term rental prices, especially on platforms like Airbnb, which host over 26,000 units in central areas.
- Just and Affordable Rent Law: Enactment of a law to regulate and stabilize rental prices, balancing the rights of both tenants and landlords.
- Tenant Rights Defense: Establishment of a public body to provide legal defense, mediation, and penalties against illegal evictions and abusive practices in the rental market.
- Housing and Land Observatory: Creation of an entity to systematize and analyze data on housing prices, contracts, and market trends, providing legal support for regulations.
Public Response and Concerns
While the plan aims to benefit lower-income residents and curb gentrification, some critics express concern over its potential negative impact on private property rights and free market principles. The government, however, insists that the new measures will not lead to rent-freezing policies of the past, which reportedly caused urban deterioration. Instead, they emphasize that only inflation will serve as a cap on rent increases.
Historical Context and Previous Attempts
This rent control plan is not entirely new. In August 2024, former Mexico City Mayor Martí Batres introduced a similar proposal during a conference with then-President Andrés Manuel López Obrador. The previous initiative aimed to regulate rental prices in Mexico City, capping annual rent for apartments and rooms at the inflation rate.
Key Questions and Answers
- What is the main goal of this plan? The primary objective is to stabilize rents in high-demand areas, protect low-income families from excessive rent hikes, and combat gentrification.
- How will the government control rental prices? By implementing an index of reasonable rental prices, regulating short-term rental platforms, and enacting a just and affordable rent law.
- What measures are in place to protect tenants’ rights? A public defense organism and an observatory for housing and land will offer legal support, mediation, and enforcement against illegal evictions and abusive practices.
- Are there concerns about the plan’s impact on private property? Some critics worry that capping rents might infringe on private property rights and distort the free market. The government, however, asserts that only inflation will be used as a limit on rent increases.
