This week, the Supreme Court of Justice of the Nation (SCJN), led by Hugo Aguilar, unanimously agreed that the annual rent increase for properties in Mexico City must not exceed the inflation rate. This decision aims to prevent excessive rental hikes, which in recent years have soared to 10, 20, or even 50 percent increases from one year to the next. With this ruling, landlords will have to align their rent increases with economic realities as dictated by the inflation statistics.

The decision stemmed from a constitutional challenge brought by Urbanhub México, contesting the legality of prior regulations that allowed for significant rent hikes. Such regulations have already strained tenants, and the ruling is expected to provide some relief to renters in the capital, which is currently under the governance of Clara Brugada. It reflects a broader concern about housing affordability amid escalating living costs in urban areas.

The implications of this ruling could be far-reaching. It establishes a precedent that could influence housing regulations and landlord-tenant negotiations going forward, potentially mitigating the rapid escalation of living expenses in a city where housing has become increasingly unaffordable. This ruling might also compel the government to consider more comprehensive measures related to housing stability and affordability in the future, ensuring that the interests of both landlords and tenants are adequately balanced moving forward.