Jalisco lawmakers propose limiting short-term platform rentals to 180 nights per year and taxing vacant homes, aiming to curb gentrification and ease the housing crisis across the state.
In a push to address the growing housing crisis and slow the pace of gentrification, Jalisco lawmaker Mariana Casillas Guerrero of the Futuro Party has proposed a sweeping legislative package that would limit short-term rentals on platforms like Airbnb and introduce taxes on unoccupied properties across the state.
The proposals, introduced this week in the Jalisco Congress, are aimed at reining in what Casillas describes as out-of-control real estate speculation, fueled by tourism and investor-driven housing development. A central feature of the initiative is a cap on short-term rentals—properties listed on platforms like Airbnb would be restricted to a maximum of 180 nights per year, mirroring legislation approved in Mexico City in 2024.
“In Guadalajara, Citizen Movement has governed the city as if it were a brand,” Casillas said during a press conference. “They’ve celebrated the rise of tourism as if it were development, ignoring the fact that behind it are displaced families and rising rents.”
Airbnb Caps and Neighborhood-Specific Limits
The proposal would go even further in tourist-saturated areas, where locals have struggled with rising rents and reduced housing availability. In Guadalajara neighborhoods like La Americana, Moderna, and Obrera—where short-term rentals have become especially prevalent—hosts would only be allowed to rent out properties for a maximum of 90 nights per year.
Representative Casillas emphasized the urgency of the problem, citing data that shows one in three homes in the Obrera neighborhood is now used for tourist rentals. “This reduces the number of long-term rental homes available to working families,” she warned.
Under the plan, newly built properties—those less than five years old—would be barred from registering on short-term rental platforms altogether, particularly targeting speculative builds designed for short-term rental use ahead of events like the upcoming FIFA World Cup.
Targeting Vacancy and Real Estate Speculation
To complement the short-term rental restrictions, Casillas also proposed a reform to the Municipal Finance Law of Jalisco that would tax vacant homes. The measure would apply a 100% surcharge on property taxes for residences that are habitable but have been left unoccupied without justifiable reason for more than a year.
“The idea is simple: if you’re hoarding homes and not using them, you’ll pay for the privilege,” explained Juan Pablo Martínez, a member of the Technical Body of the Planning, Territorial Planning, and Water Management Commission of the Jalisco Congress.
Exceptions would be made for homeowners temporarily away for work, academic, or medical reasons, or for those entangled in legal disputes. The law would kick in for individuals who own more than three vacant homes, while real estate companies would be taxed starting with the first vacant unit.
Jalisco currently has an estimated 450,000 vacant homes, according to Casillas, while around 95,000 families in Guadalajara are actively searching for affordable housing—a stark mismatch she argues stems directly from speculative investment trends encouraged by past administrations.
Penalties and Enforcement
Property owners who violate the new rules—either by exceeding rental limits or failing to pay the vacancy tax—would face steep fines. The proposed legislation outlines penalties ranging from 50 to 500 UMAS (Measurement and Update Units) for individual property owners, and 100 to 1,000 UMAS for digital rental platforms that fail to enforce the rules.
The revenue generated from these fines and vacancy taxes would fund municipal social housing projects and broader public housing policies across Jalisco.
Martínez made it clear that the intent is not to target small-scale landlords who rent out spare rooms or in-law units to make ends meet, but rather large investors and developers who have turned entire buildings into short-term rental hubs.
“What we’re seeking isn’t to regulate small landlords who add an apartment or an extra room,” he said, “but rather large landlords who build entire towers.”
A Model for Other States?
If approved, Jalisco’s reforms could set a precedent for other Mexican states grappling with similar issues. While cities like Mexico City and Oaxaca have begun moving toward regulating short-term rentals, Casillas’ twin-proposal approach—capping Airbnb stays and taxing long-term vacancies—is among the most ambitious efforts yet seen at the state level.
Whether the initiative will gain enough support in Congress remains to be seen. But for many residents in Guadalajara’s rapidly transforming neighborhoods, it’s a long-awaited step toward rebalancing the housing market in favor of locals.
Jalisco lawmakers propose limiting short-term platform rentals to 180 nights per year and taxing vacant homes, aiming to curb gentrification and . . .
