Despite the fact that for months the Government has tried to modify the current rental lawwhich has been considered a failure, the debate on the project fails to advance.
Even in the Chamber of Deputies, the discussion about the rental law was stalled, even though they expected to have a ruling in mid-May, after he began to be treated the project.
The debate was stalled due to the lack of consensus between two opposing proposals, and despite the fact that the new president of the Chamber, Cecilia Moreau, was a key part of the discussion, for now there is no date to advance in the discussion of the rental law.
The process is so stuck that even some parliamentarians consider that the debate may not be concluded this year; Meanwhile, tenants and owners complain about the economic losses, since due to the effect of inflation, what is contributed is not enough.
While tenants spend an average of 50% of their salary on rent and expenses, the owners assure that despite monthly updates, which set increases of around 50% or more, these do not reach above inflation.
From the Real Estate Market they affirmed that “the rental price is the only frozen price in the Argentine economy, which remains unchanged for a year living with inflation rates that already reach 71% year-on-year.”
The most worrying thing is that this situation harms both the tenant and the owner, since the former is forced to pay high housing costs with little available supply; and the second, unable to offset the high costs of inflation with the increases, prefers to put the property up for sale, which further reduces the rental supply in the country.
How much rent went up in August
As established by the rental law in force, increases in contracts are governed by annual adjustments, so Those who suffered increases this month had an increase of 61%; that is, if a person paid $50,000 during the period between August 2021 and August 2022, from this month he must pay $80,500.
For this reason, given the instability of the market and the high costs that benefit neither owners nor tenants, it is urgent that the debate in the Project progress in the Chamber of Deputies, otherwise the balance will remain unbalanced and will further aggravate a social and economic problem.
