(Bloomberg) — Mexico City is limiting real estate rentals through apps and online platforms such as Airbnb, in a bid to curb rising home prices and “gentrification”.
Most Read from Bloomberg
The city’s legislators voted for a reform that will 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 industry and avoid changing the character of neighborhoods saturated by housing destined exclusively for tourists, said Cesar Guijosa of the Morena party, which controls the city as well as the national government.
The mass arrival of so-called Digital Nomads, mainly from the US, has led to a increasing complaints from locals. Many choose to work out of Mexico City because it’s relatively cheap compared to US cities.
That reforms also prohibit government-built social housing from being rented to tourists on digital platforms.
Opposing legislators rejected the reforms, arguing that they violate the individual freedom and the rights of property owners.
Most Read from Bloomberg Businessweek
©2024 Bloomberg L.P.
