The incredible success of renting in Buenos Aires

Approximately 4,000 people live on the streets of the city of Buenos Aires. Undocumented workers and immigrants celebrated Christmas in front of Congress. They raised their plastic glasses, looking ahead to a frightening future. This scene had a powerful impact, among other reasons, because it left hanging in the air the question that has been on the minds of many living in and around Argentina’s capital: Will they spend their next holiday in the open city air without a home to shelter themselves? Renting is jumping into the void or hitting the lottery jackpot In this city with a population of three million, four million of whom come to work from the surrounding area every day. There are 228,000 vacant homes, up 14% from a year ago.

far right government Javier Milei The controversial Decree of Necessity and Urgency (DNU), which contained 300 measures, included the repeal of the Rental Law, which was strongly criticized by property owners. The reluctance to put their flats on the market was due to a regulatory challenge not foreseen. In a country where inflation is 160% in 2023, rental price updates were made annually. This has greatly devalued the benefits of renting on Airbnb unless they are offered to tourists in dollars. The House of Representatives rearranged this condition to ensure that prices were reviewed every period. It was envisaged that payments would always be made in pesos, the national currency. This change did not change the panorama.

Now the situation has changed 180 degrees. Landlord and tenant can freely agree on how long a property will be rented, what currency it will be paid in, the frequency of adjustments due to the increase in the cost of living, and who will pay the regulations and taxes. The owner has unprecedented power to terminate the contract. The truth is that the real estate market did not even wait for Milei to repeal the law in its final form. Contracts are signed or renewed through verbal agreements as the dollar begins to be governed as an exchange rate based on the black market price. Tenants who were about to renew their leases received a surprising message: If they didn’t want to pack their bags, they would have to resort to North American currency. Many citizens, especially young people, do not have access to such conditions and, as tango reminds us, they are forced to do so. to “return defeated” to the “little house” of their “elders (parents)”. Others agree to move in with friends and share the expenses.

Surprise and surrender

“Everyone who consults us They start crying because they don’t know where to live. “I have never seen this level of desperation in the last decade,” said Gervasio Muñoz, president of the National Tenants Federation, which provides legal advice. A similar organisation, the Civil Tenants Group Association, also filed an amparo case before the Court. “The courts decided to declare the DNU invalid.”The outlook is critical and will have very serious consequences“said Sebastián Artola, leader of a similar group.”This is the worst disruption in terms of access to rental housing. Argentina Since the restoration of democracy“. According to Artola, “DNU is illegal and unconstitutional no matter how you look at it, it is intended to reform the Civil and Commercial Code with the stroke of a pen and without going through Congress. “What is clear is that this is a government of real estate developers and economic power.”

The scene is repeated at this time. A tenant is in limbo. He doesn’t know whether to stay in the apartment or leave the apartment because he doesn’t know what negative conditions will be asked of him. “I expect the worst,” they say, and they make calculations. The prices of the flats offered for sale since the end of December have reached the ceiling with an increase of over 100 percent. Renting is a one-way trip and it is unknown how long it will be affordable. According to the report prepared by the Center for Legal and Social Research (CELS), the Association for Civil Justice and Equality (ACIJ) and the Institute of Geography of the University of Buenos Aires (UBA), the salary does not reach the guarantee. tenant situation. HE 63 percent of people have incurred debts to continue renting. Everything is made worse by the rise of urban poverty, which, according to the latest statistics, exceeds the 45% ceiling.

It is in this context that Christmas before Congress is seen as a disturbing horizon for those who cannot rent. before Milei Will devalue the currency by 118% and the inflation race will be triggered once again, some 9,440 people slept on sidewalks, squares, churches, subway stairs, under bridges and bank tellers.. The vast majority are in the city of Buenos Aires. Experts believe that this situation will only get worse because not only in the capital There are thousands of people who do not own a home and do not meet the minimum requirements to rent an apartment.. They are the ones who usually live in the so-called family hotels that operate near the train terminal in Constitución. Some of these thousands manage social assistance to pay for a room. Crisis magazine noted that this was an “underground” life where “cocaine dens, homeless people, ghost governments and police connivance” came together.

Source: Informacion


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