Argentina’s newly elected president, Javier Milei, has made a bold move by eliminating the country’s rental law, leading to a significant drop in rental prices by 40%. This decision has triggered a surge in the rental market, particularly in Buenos Aires, where landlords are quickly listing their properties for rent. As a result, the city’s rental supply has grown by more than 170%.
For years, Argentina had some of the strictest rent-control regulations in the world, aimed at keeping housing affordable. However, Milei’s decision to remove these regulations has been hailed as a major success in what many are calling “economic shock therapy.” His actions are dismantling long-standing systems of price controls, closing several government agencies, and eliminating trade restrictions, which had been put in place over eight decades of socialist and military rule.
One of the supporters of Milei’s policy is Federico Gonzalez, an economist from Buenos Aires-based Empiria Consultores. He praised the president’s decision, noting that while rents are still high in nominal terms, many renters are now getting better deals. Adjusted for inflation, rental prices have dropped by 40% since October of the previous year. Gonzalez added that the capital is currently experiencing a boom in the rental market.
Despite Buenos Aires being known as the “Paris of the South” for its wide boulevards and vibrant café culture, many of its apartments had long been left vacant. Landlords were often reluctant to rent their properties under the government’s strict rent-control regulations, opting instead to leave them empty or lease them as vacation rentals.
In 2022, it was reported by Cedesu, a policy group focused on urban development, that there were around 200,000 vacant properties in Buenos Aires, a 45% increase from 2018. This made it difficult for people to find affordable housing under the rent-control law.
Aldana Oliver, a student who moved to La Plata to study dentistry, shared her experience of struggling to find a rental property. She spent around 18 months searching for an apartment, as the few available were extremely expensive. However, after the rent-control law was abolished, Oliver was able to secure a studio apartment for just $200 a month. “I found something really nice at a good price,” she said.
As more apartments become available, rental prices are stabilizing. According to Zonaprop, Argentina’s largest real estate website, monthly price increases are now at their lowest rate since 2021, reflecting the growing supply of rental properties.
