Considering the Average Taxable Remuneration of Stable Workers (RIPTE), which rose below inflation in recent months, rents represented between 45% and 100% of the salary according to the number of rooms.
In a context of high inflationthe price of rents remain high in relation to salaries. In 2023 they increased above consumer price index (CPI) and so far in 2024, after the repeal of the law that regulated rental contracts for housingrose below the price variation, but are unable to reach a reasonable cost in relation to the workers’ salaries.
To rent a two room apartment it took a 64% of the income of a worker considering the Average Taxable Remuneration of Stable Workers (RIPTE). Meanwhile, for a studio apartment was required Four. Five% and for a three environments he 100%according to the consultant PxQ that drives Emmanuel Alvarez Agis.
CABA rentals: how much does an apartment cost?
He average rental cost in pesos it was of $266,092 for a studio apartment (+7.0% vs January 2024), $362,727 for a two-bedroom (+2.2% vs January 2024) and $536,614 for a three-bedroom (+0.6% vs January 2024). In addition, the offer is found to a greater extent in local currency (62%), while only 37% is in dollars and the remaining 1% with the mention “to consult.”
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In the midst of the discussion over the validity of the DNU 70/2023 in it National Congressthe report of PxQ With Law 27,551, the market had increases above inflation and almost zero supply. However, after the changes in the rental law Last October 2023 – where the update was semiannual (instead of annual), but prices were required to be in pesos and contracts were for three years – the supply increased.
But after the triumph of Javier Milei in it runoffin November the offer suffered a sharp drop again due to the uncertainty of what the libertarian leader would do with the rule that regulated housing contractssince in the past he had shown his discontent with the legislation.
DNU and rentals
Finally, on December 22, the new administration presented the DNU -today in conflict- that among other modifications, applied a rent deregulation. This caused the offer to experience a “strong increase in the month of January both in pesos and dollars” and the publications with prices “to consult” were reduced. “At the same time, average rental prices remained virtually unchanged,” the report noted.
Now, with the setback that the decree in it Senate The market was once again on alert. From the Argentine Real Estate Chamber (CIA) expressed their concern “because of the impact that this may have on the rental market throughout the country”.
“The result of going back to the regulations prior to the sanction of the DNU would be an abrupt restriction of supply, which would result in enormous damage to society as a whole,” they stated from INCat the same time they highlighted that the offer behind the repeal of the rental law doubled and values increased below inflation “benefiting tenants”.
In contrast from the Tenants Federationmade up of 16 organizations, targeted the real estatehousing entrepreneurs and millionaire politicians and highlighted: “There is no tenant who is not suffering the dire consequences of having to sign short contracts with wild indexical clauses (quarterly increases due to inflation), which will make rents unpayable in the short term“.
In that sense, the tenant organizations appealed to the “social awareness and responsibility” of the deputies and shot: “They have to definitively reverse this disastrous decree that only benefits a handful of rentier speculators, pushing many tenant families into dramatic situations such as not having a place to live.
Source: Ambito
