The Supreme Court of Mexico recently ruled that limiting housing rent increases in Mexico City to inflation rates is constitutional. While this policy is aimed at addressing the significant unaffordability of housing in the area, critics argue that it could have adverse effects. The intention behind the measure is to help those struggling to afford housing amidst rising costs, especially for young workers entering the job market, who find it nearly impossible to buy a home due to high prices.

Housing affordability remains a critical issue in Mexico City, as property prices and rental costs have surged, exerting financial pressure on household incomes. While acknowledging the seriousness of this problem, there is a growing concern that capping rent increases to the inflation rate may disincentivize property investment and maintenance. This could result in landlords being less likely to invest in their properties, eventually leading to a decrease in the quality of rental housing available in the market.

Overall, while the goal of making housing more affordable is commendable, the chosen approach may not effectively address the underlying issues. Stakeholders call for alternative solutions that would encourage the development of affordable housing without discouraging private sector investment. Discussions are ongoing about how the government can balance the needs of renters while also ensuring that landlords can maintain their properties and service costs efficiently, to promote a healthier housing market in Mexico City.