Rent Control: Mexico City Sets Limits on House Rent

Mexico City has set a cap on rent increases after reports showed that many locals were moving to the outskirts due to soaring rental prices in the city’s older districts.

The legal reform, announced by CDMX authorities, limits landlords from raising monthly rent by more than 10%. Any increase must align with the inflation rate that the Bank of Mexico announces every two months.

To ensure transparency, the municipal authority will soon launch a digital registry for lease agreements. Landlords will be required to register rent contracts within 30 days of signing.

Additionally, the government plans to promote affordable public housing for rent. It will also provide essential utilities like water and electricity to private rental properties.

“The challenge is what kind of city we want for young people. We cannot continue to push them to the outskirts,” said the deputy head of the CDMX government in an interview with local media.

A study by Mexican proptech firm MoradaUno found that rental prices in the city grew by an average of 3.8% in 2023 and 4.1% in 2024—closely matching inflation rates.

However, between 2013 and 2019, rent prices surged up to eight times more than the minimum wage.

To control the impact of short-term rentals, platforms like Airbnb and Booking.com will be regulated. Rentals will be limited to a maximum of six months per year.