Shorter contract terms and more frequent price adjustments

After the Rental Law was abolished, the three-year contract duration rule was only followed in 9.7% of cases, leading to a significant increase in short-term rentals. Contracts lasting one to two years are now the most common, accounting for 57.7% of cases surveyed in June. These findings are part of the National Tenant Survey conducted by the National Tenant Federation and Ni Una Menos group to understand the economic and housing situations of tenants nearly six months after the decree’s elimination.

The survey covered various aspects of rented homes, including income, contract amounts, monthly expenses based on the number of rooms and location, contract duration and price adjustments frequency, debt to meet payments, as well as housing concerns and expectations. Over 2,400 responses were collected nationwide. The study indicates that contract updates are now almost exclusively done every six months or less, with 95.5% of rentals being adjusted within such periods.

In terms of pricing, contracts in Buenos Aires started this year paying 40-50% more compared to those under the Rental Law. Another study found that rents in the Buenos Aires metropolitan area (AMBA) saw monthly variations of 5.6% for apartments and 9.6% for houses in June compared to May. Year-on-year price increases were substantial, despite being below inflation rates. For example, house rentals in Greater Buenos Aires went up by 141.4%-184.6%, and apartment rentals in the AMBA by 115.1%-203.8%.

The Inquilinos Agrupados survey showed that 34.4% of household income goes towards rent and expenses, excluding taxes and utilities. For rentals started after Decree 70/2023, this expense amounts to 38.6%. Additionally, 15% of respondents had to move due to inability to pay rent, and 62% currently have some form of debt. The survey highlighted that housing and income evolution are major concerns for over 80% of respondents. Almost half anticipate difficulties paying rent in the upcoming months.

Overall, these findings shed light on the challenges faced by tenants post the Rental Law’s abolition and the impact on rental housing dynamics and affordability.