Narayan AmmachchiThe repeal of Argentina’s controversial rent control law dramatically reshaped the country’s housing market, leading to a sharp decline in rental prices and a surge in available properties.
President Javier Milei overturned the law in December of 2023, which had been introduced by his predecessor, Alberto Fernández.
Local media indicate that the supply of rental properties surged by an astonishing 211.9%, while real prices have fallen by 26.6%.
The repeal has empowered property owners and tenants to negotiate contract terms freely, including duration, adjustment indexes and currency types.
By June 2024, the supply of rental apartments had more than doubled compared to pre-repeal levels, with prices reflecting this shift, showing a cumulative decline of 26.6% by mid-2024.
While rental prices have generally decreased, the city of Buenos Aires has experienced a modest uptick. Over the past year, rents in the capital rose by 163.7%, though this increase lags behind inflation (265.7%) and the Lease Contracts Index (ICL) adjustment (249.1%).
Economic challenges for renters in Argentina remain daunting, however. The “tenant basket,” which measures monthly expenses for renters, reveals that a single adult in Buenos Aires needs 675,960 pesos (US$712) to cover their costs, while a family of four requires 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.
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