Most of the tenants allocate more than 30 percent of your income to pay your rent. The age trend of those who rent is spreading to adult sectors, reaching 45 years of age. Almost half of the tenants are indebted.
The data arise from a survey carried out by Grouped Tenants during September. It showed that of 2,400 tenants surveyed nationwide, one 20 percent allocate half of their salary to pay the rent, a 24 percent allocate 40 percent of household income and another 24 percent of tenants spend 30 percent of their income on this expense. Meanwhile, 12 percent of those surveyed allocate 90 percent of their income to pay the rent for the home.
The survey reflected a common situation in many Argentine households, from which those who have tenant status are not exempt: the 49 percent of tenants are in debt. The majority, 30 percent, with the credit card. Other debts contracted by these households are with the payment of services, with a relative or with the bank in 16.5; 15.2 and 14.8 percent, respectively.
Meanwhile, the percentage of people with rent debts is just 5.8 percent. From the group they interpret that “it is low because the last thing that is stopped paying is the rent and when they cannot pay they are evicted legally or by force. “
80 percent of the responses are concentrated in the age group between 26 and 45 years old. “What it shows is that the tenant condition is spreading to adult sectors, reaching 45 years of age, while in 2001, according to Indec data, they reached 40 years of age,” they assure from Grouped Tenants.
The Rentals Law passed last year in the midst of a pandemic is openly attacked by the opposition and does not have a clear defense of the ruling party. One of the main arguments against her has to do with the fact that she is held responsible for the increase in new rental contracts in the last year since they came into effect.
Indeed, given a context of inflation that is around 50 percent, the survey revealed that for 50.6 percent of those consulted the renewal of rental contracts had increases of up to 60 percent. 28.8 percent said that the increases were between 70 and 150 percent and 17.7 percent responded that the adjustments were between 20 and 30 percent.
While during the first months there were many complaints for breach of the law, the survey revealed that the 56.7 percent of tenants have a three-year contract and for him 68.2 percent the update is annual, which shows an improvement in its application.
Houses without people
In this context, the ACIJ denounces that the percentage of vacant homes in Buenos Aires it is almost double the average of other Latin American cities, which is around 5 percent. In effect in 2019 a 9.2 percent of properties for residential use were empty in the Federal Capital, while the housing deficit reached 11.6 percent according to the last census in 2010.
The report on Habitat in Crisis carried out by the ACIJ highlights that the neighborhoods with the most empty houses are Puerto Madero, Retiro, Recoleta and Palermo, evidencing a correlation between idleness and the price per square meter. From the association they assure that it is a speculation: they make the empty property wait, generating a shortage in the market. That unfailingly increases prices and only then do they put them up for rent again.
Buenos Aires is not the only city with this problem. 80 percent of the population of Berlin is tenants. This last week a referendum was held in favor of expropriating 240,000 homes so that the State can regulate the real estate market, a highly concentrated sector where speculation reigns. The measure, in addition to the government’s purchase of 14,750 homes, is expected to have a strong downward impact on rents in the German capital.