(Bloomberg) — Mexico City is restricting real estate rentals through apps and online platforms such as Airbnb, in an effort to curb rising housing prices and “gentrification.”
Most read from Bloomberg
The city’s lawmakers have voted in favor of a reform that would ban landlords from renting out their properties using such apps for more than 50% of the days in a year.
The reform is intended to reduce “unfair” competition with hotels, the city’s congress said in a press release.
Limiting the supply of tourist accommodation will promote market balance, support the hotel sector and prevent changing the character of neighborhoods saturated with housing exclusively for tourists, said Cesar Guijosa of the Morena party, which represents both the city and the national government controls.
The massive arrival of so-called Digital Nomads, mainly from the US, has led to increasing complaints from locals. Many choose to work from Mexico City because it is relatively cheap compared to American cities.
Those reforms also ban government-built social housing from being rented to tourists on digital platforms.
Opposing lawmakers rejected the reforms, arguing they violate individual liberty and the rights of property owners.
Most read from Bloomberg Businessweek
©2024 BloombergLP
