Mexico City’s Isabel building residents faced forced subdivision as owners split 77 units into smaller spaces, sparking a broader fight against rising rents. The conflict mirrors the city’s shift toward short‑term rentals and luxury conversions in neighborhoods like Condesa.

Mayor Clara Brugada unveiled a constitutional reform banning rent hikes above inflation, creating a renters’ rights office and committing to build 4,500 affordable homes in the historic centre. The move follows protests that highlighted the displacement of long‑time tenants.

Developers argue that moderate inflation‑adjusted increases—about 16% in Condesa over ten years—are justified, while critics say the focus on premium housing fuels scarcity. The new policy could curb speculative renovations but may also dampen investment incentives, according to economists.

Current enforcement gaps allow landlords to terminate contracts to avoid rent limits, a tactic already used at the Isabel building. The city must enforce its cap and protect tenants, or the trend of evictions and gentrification will continue.