The Minimum Living and Mobile Wage, which in December is $271,571, covers 69.6% of the rent of a property
The adjustment in the official exchange rate, the repeal of the law of Rentals and the slowdown in inflation, drove a recovery in supply in the real estate market. However, while the flexibility of contractual conditions caused supply to increase, the fall in purchasing power and the deregulation of increases negatively impacted demand.
According to a report from the Scalabrini Ortiz Center for Economic and Social Studies (CESO), during this year, the rent of a studio apartment in the city of Rosario represented on average 46% of the Minimum, Living and Mobile Wage (SMVyM), while for the City of Buenos Aires (CABA) the value rose to 88%.
Rental prices slow down
2024, especially during the second half of the year, presented increases in rentals lower than the general price level. This can be explained by a multiplicity of factors, such as the budgetary brake that was imposed with the fall in real income, and the deregulation of the market, which made it possible for contracts to be indexed under any index and periodicity, with which Owners no longer needed to cover themselves with high initial prices, but rather tended to agree on updates every 3 or 4 months.
Furthermore, the exchange rate appreciation, which negatively affected tourism, added (especially in CABA) a new phenomenon that also slowed the increases: a proportion of units that were previously destined for rentals temporary housing for foreigners, it was converted to permanent housing.
However, the weight of the rentals on family income continued to increase. This month, the price of renting a studio apartment in Rosario represents 74% of the SMVyM, while in CABA the ratio is 144%, noted CESO.
How much does it cost to rent in CABA?
According to the report, renting a studio apartment in CABA today costs an average of $390,000 per month, a figure that had a monthly variation of 2.6%. Meanwhile, a two-bedroom costs $480,000 per month and a three-bedroom is available for $692,000.
The report also highlights that the Minimum Living and Mobile Wage, which in December is $271,571, covers 69.6% of a rent. Meanwhile, expenses, which increased considerably this year, reach an average of 23.1% of the offer price of a rental.
Regarding stock, the repeal of the law of rentalscaused many properties to migrate from sale to rental. In this way, the total supply doubled compared to December of the previous year.
Finally, it stands out that 25% of the offers of rentals They are in dollars, a figure that was decreasing month by month. Today, it is more convenient for owners to make contracts in pesos with updates every three or four months. It is also easier for most tenants to be able to pay in the local currency.
Source: Ambito
