The Mexico City government revealed a preliminary approach on Wednesday to address gentrification, following a heated protest against the rising housing costs, which some attribute to mass tourism and an influx of foreigners often referred to as “digital nomads” who temporarily reside in the capital city.

Mayor Clara Brugada of Mexico City stated that the plan will involve regulations to prevent landlords from raising rents beyond the inflation rate. Additionally, authorities will provide a list of “reasonable rental” proposals.

Brugada indicated that her administration will engage in discussions with residents of the capital about her plan, with the aim of developing legislation to encourage affordable housing options.

The protest in early July was fueled by government failures and active promotion to attract digital nomads who work remotely often for foreign companies from Mexico City, according to experts.

Hundreds of people marched in neighborhoods popular with tourists, but the demonstration turned violent when a small number of people began smashing storefronts and harassing foreigners.

Mexican President Claudia Sheinbaum said that the protest was marked by xenophobia.

“The xenophobic displays seen at that protest have to be condemned. No one should be able to say ‘any nationality get out of our country’ even over a legitimate problem like gentrification,” Sheinbaum said back then.

Many Mexicans have complained about being priced out of their neighborhoods — in part because of a move made by Sheinbaum in 2022, when she was the Mexico City mayor and signed an agreement with Airbnb and UNESCO to boost tourism and attract digital nomads despite concern over the impact short-term rentals could have.

During the protest, some people marched with signs reading “Gringo: Stop stealing our home” and “Housing regulations now!”

Some anti-gentrification groups have called for a new protest this weekend.