In just one year, Argentina’s rental market has seen a dramatic transformation following President Javier Milei’s decision to abolish the country’s rent-control law, leading to a 40% drop in rental prices and a surge in available properties.
In Buenos Aires alone, rental property listings have increased by over 170%, as landlords rush to re-enter the market.
For years, Argentina maintained one of the strictest rent-control laws globally, causing a scarcity of rental properties and driving up prices.
Milei’s move to undo rent-control regulations has resulted in one of the clearest-cut victories in what has been described as “economic shock therapy.”
Economist Federico Gonzalez of Buenos Aires-based Empiria Consultores welcomed the development, noting that despite rents still rising in nominal terms, renters are enjoying more favorable deals due to the 40% drop in real prices when adjusted for inflation.
Before the law was scrapped, many landlords kept their properties vacant, unwilling to comply with the stringent rental regulations.
According to Cedesu, a policy group focused on urban development, the number of empty apartments in Buenos Aires had grown to 200,000 by 2022, a 45% increase since 2018.
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Renters like Aldana Oliver, a dentistry student in La Plata, experienced the relief firsthand. After months of searching for an affordable place, she secured a studio for $200 a month after the rental law was repealed.
She stated, “There were few places to rent, and those available were very expensive,” said Oliver. After rent control was scrapped, she quickly found a studio apartment for about $200 a month. “I found something really nice. And I got a good price,” Ms Oliver added.
With more properties available, rental prices have stabilized, showing the lowest rate of increase since 2021, according to Zonaprop, Argentina’s largest real estate website.
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