Mexico City’s New Rent Program Fights Rising Housing Costs

Mexico City, Mexico — The government of Mexico City (CDMX) has initiated a Public Housing for Rent program aimed at increasing access to affordable housing in areas where rental prices have become unattainable for low-income families. The program includes an investment of 600 million pesos to construct 1,000 rental units in its first phase, with a long-term goal of 20,000 units by the end of the current administration.

Program Details and Objectives

The first 1,000 units will be located in central districts, including Cuauhtémoc, Azcapotzalco, and Miguel Hidalgo, where rising rents have displaced vulnerable populations. The program prioritizes households earning no more than three minimum wages, with preference given to female-headed households, seniors, young people, and families recently displaced by economic pressures.

Clara Brugada, the head of Mexico City’s government, emphasized the urgency of the initiative: "We already have 1,000 rental housing units secured. We are committed to rehabilitating and delivering them in the coming months. Our goal is to reach at least 20,000 rental units by the end of this administration."

Addressing the Housing Crisis

Inti Muñoz Santini, Secretary of Housing for Mexico City, stated that the program responds to an urgent need for affordable housing. According to government data, approximately 53,000 families seek rental housing annually, while rising costs force many to spend over 30% of their income on rent or relocate far from their workplaces.

The city’s analysis reveals that the average monthly income for many families barely exceeds 10,000 pesos, a figure insufficient to keep pace with rental prices that have surged over the past 15 years. To support the program, the government has expanded its public land reserves by 10,000 square meters, adding to the existing 9,000 square meters available for housing development.

Implementation and Future Plans

The program’s pilot phase began with the conversion of a building near Plaza Tlaxcoaque, previously occupied by the company Yale, into 120 publicly owned rental units. An additional 300 apartments, reconstructed after the 2017 earthquakes, will also be made available for rent following the approval of the Reconstruction Law.

Muñoz Santini noted that the city is finalizing the program’s regulations, public calls for applications, and transparency mechanisms to ensure equitable access. A cooperative housing pilot project in the Buenos Aires neighborhood is also underway, where a building will be designated for public rental under the new scheme.

Over the next six years, the city plans to invest 9,000 million pesos in housing solutions, including construction, improvements, and rental programs, targeting 200,000 housing actions.

Related Housing Challenges

The initiative comes as gentrification intensifies in Mexico City, with rents in central areas such as Chapultepec exceeding 28,000 pesos per month. Similar trends have been observed in other Mexican cities, including Oaxaca and Mérida, where rising housing costs continue to displace long-term residents.

The program marks a significant step in the government’s efforts to mitigate displacement and ensure housing affordability for the city’s most vulnerable populations.