Mexico Citys government revealed difficult new guidelines to resolve its fast-rising leas.
Beginning August 28, 2024, authorities will limit lease boosts to no more than the main inflation rate.Before, property owners could raise leas up to 10 percent each year, even when incomes hardly grew.
Over the past decade, rents increased much faster than salaries, forcing countless working families out of the city center.Today, the typical lease for a two-bedroom apartment or condo reaches almost 19,400 pesos (about $950) a month and has climbed up over 14 percent in a year.
Lots of longtime residents now move to distant neighborhoods since they cant keep up with these costs.The city has about 2.7 million homes, however it still requires at least 800,000 more to meet current need.
Gentrification and growth in short-term leasings, like Airbnb, have made things worse.Many homes that when housed households now serve temporary visitors.
In reaction, the brand-new rules will also restrict short-term leasings to half the year for any home.
City officials want to stop the loss of steady, cost effective homes for local people.Mexico City Caps Rents to Protect Its Urban Core: A Market Crossroads.
(Photo Internet reproduction)Alongside new lease rules, the federal government doubled its real estate spending plan to 9 billion pesos (roughly $444 million) and promised 20,000 brand-new public real estate systems by 2030.
These homes will charge renters no more than 30 percent of their income.Still, specialists state just 2 percent of brand-new homes are economical for average families, while the majority of brand-new builds target higher-income buyers.
In 2024, building and construction of low-cost homes struck a national low, with just 128,000 units finished throughout the country.All brand-new and current rent contracts must be signed up through a digital platform within 90 days of the laws publication.
The city hopes this will bring more transparency and minimize abuses, given that the rental market today remains mainly informal.Mexico City deals with a major real estate crunch that affects both citizens and small companies.
Authorities hope these strong measures will make staying in the city possible for regular people and help keep neighborhoods and local commerce alive.If not, more households might be pressed out, raising stress and compromising the citys vibrant areas.