Mexico City caps Airbnb rentals at 180 days to curb gentrification

Mexico City’s Congress approved a reform to the Tourism and Housing Law imposing limits on real estate rentals through apps and online platforms such as Airbnb.

The reform is part of several recent initiatives to promote balance in the temporary rental market, curb gentrification and support the hotel industry in the capital.

Martí Batres, current director of the State Workers' Social Security Institute (ISSSTE)
The initiative, presented by interim mayor Martí Batres — and current director of the State Workers’ Social Security Institute (ISSSTE) — also prohibits government-built social housing from being rented to tourists via online rental platforms. (Mario Jasso/Cuartoscuro)

The initiative, presented by interim mayor Martí Batres a few weeks before his term ended on Oct. 5, establishes a 180-day-per-year limit on online vacation rentals, including Airbnb. It also prohibits government-built social housing from being rented to tourists via online rental platforms.

Opposing legislators voted against the reform, arguing that it violates the individual freedom and rights of property owners, according to Bloomberg.

Deputy César Emilio Guijosa, a member of the ruling party Morena, defended the measure arguing that the growth of digital tourism has generated problems such as gentrification, as some neighborhoods have seen real estate prices rise upon becoming saturated by housing destined exclusively for tourists.

Morena insists the transformation — largely caused by the post-pandemic increase in “digital nomads” — has negatively affected capital residents and unfairly impacted the traditional hotel industry.

By limiting the occupancy of properties to 50% annually, Guijosa said the reform will help mitigate these externalities and regulate the temporary rental market by balancing the competition between temporary accommodations and traditional hotels. 

National Action Party (PAN) lawmakers criticized the reform, insisting that it violates the freedom of owners over the use of their property and might encourage a black market for unregulated rentals. 

They also pointed out that the law does not clarify how compliance will be verified in one-room lodgings, where applying the 50% rule is likely to be more complicated.

This reform comes six months after another Batres proposal that requires national or foreign hosts to register in a Registry of Technological Platforms, listing the properties they make available to tourists for residential use.

Now a law, the April reform also requires hosts to submit two reports per year specifying property occupancy, with removal from the registry as a penalty for supplying false information. In September, the city congress established fines of up to 21,000 pesos (US $1,120) for violating registry rules.

With reports from El Economista, El País, Bloomberg News and Excelsior

5 COMMENTS

Have something to say? Paid Subscribers get all access to make & read comments.
The people of Santiago Xalitzintla keep Popocatépetl from erupting with chants and Indigenous prayers that blend native tradition with Catholic religious motifs.  

Santiago Xalitzintla, the town that is in charge of calming the Popocatépetl volcano

0
Why hasn't Popocatépetl had a massively violent eruption for nearly 1,300 years? Because the residents of Santiago Xalitzintla are tasked with keeping the volcano calm.
Mexico fans watching the inaugural game from a FIFA Fan Fest in the Benito Juárez borough of Mexico City

From the Zócalo to Coyoacán, CDMX’s 18 Fan Fests roar as El Tri wins World Cup debut

0
Capitalinos  — including President Claudia Sheinbaum and Mayor Clara Brugada — crowded into the 18 free Fan Fest sites across the city to watch Javier Aguirre’s team kick off the tournament on Thursday.
roads near stadium thursday morning

Security forces shut down major roads near the World Cup stadium as protesters seek to disrupt

0
City and federal security forces had been preparing all week for an influx of cars and people around Estadio Azteca, but protesters seeking to cause disruption complicated their task.
BETA Version - Powered by Perplexity