The repeal of Argentina’s controversial rent control law has dramatically changed the country’s housing market, resulting in a significant drop in rents and an increase in the supply of available properties.
President Javier Milei repealed the law introduced by his predecessor Alberto Fernández in December 2023.
According to local media, the supply of rental properties has increased by an astonishing 211.9 percent, while real prices have fallen by 26.6 percent.
With the repeal, property owners and tenants can now freely negotiate the terms of the contract, including term, adjustment indices and currency types.
By June 2024, the supply of rental apartments will more than double compared to before the lifting of the ban. This development is also reflected in prices, which will fall by a total of 26.6 percent by mid-2024.
While rental prices have generally fallen, Buenos Aires has seen a modest rebound. Last year, rents in the capital rose by 163.7%, although this increase lags behind inflation (265.7%) and the adjustment of the Rental Contract Index (ICL) (249.1%).
However, the economic challenges facing renters in Argentina remain daunting. The “renter basket,” which measures renters’ monthly expenses, shows that a single adult in Buenos Aires needs 675,960 pesos (US$712) to cover their costs, while a family of four needs 1,564,836 pesos (US$1,649).
High rental costs continue to contribute to the country’s inflation rate, making Argentina one of the most expensive countries in the region.
