Colombia is Turning Into a Country of Tenants

Colombia is becoming a country of tenants.

Almost two thirds of Colombians live in rented houses. According to a report by Fedelonjas, an association of realtors in the country, only 39% of country inhabitants own the spaces they live in.

The capital city of Bogotá is home to the largest number of renters in the country: a staggering 1.55 million, which accounts for over half of all homes in the city.

Of the 7 million renter households in the country, 21.3% are located in Bogotá. They pay an average of US$6 per square meter of space rented.

More than 90% of these renters live in neighborhoods where essential services such as water, electricity and gas are provided at subsidized rates. According to the report, most renters are low and middle income earners who chose to rent a house to take advantage of these subsidies.

The situation is slightly better on the Caribbean Coast, where the number of people looking for subsidies is lower.

Fedelonjas called on the government to cut interest rates in order to encourage investment in house building. The association argues that there has been a significant decrease in the number of people willing to buy newly constructed houses in the country and that this is a “disturbing” trend.

Rents will continue to rise sharlpy as long as new homes remaine unbuilt, Fedelonjas warned.

According to a study conducted by the same organization, rents increased by more than 4% in the first six months of this year.