Among the 7 Houses in Messi's City, 1 Is a 'Voluntary Empty House'... The Shocking Stories of the Homeowners

Argentina November Inflation Rate at 160% Yearly
Difficulty in Setting Appropriate Rent

Argentina's rental housing market is experiencing turmoil amid triple-digit murderous inflation rates. As foreigners with dollars flow in, landlords reportedly prefer to leave their properties vacant rather than rent them out to locals for pesos.

According to the British major economic newspaper Financial Times (FT) on the 20th (local time), one in seven houses in Buenos Aires, the capital of Argentina, is vacant.

This is related to the rapid inflation. Earlier, Argentina's National Institute of Statistics and Census (INDEC) announced that the consumer price index (CPI) rose 12.8% in November alone. In particular, the inflation rate compared to November last year recorded 160.9%, surpassing the 142.7% in October and setting a new record since the hyperinflation of 1989-1990.

Ultimately, due to inflation making it difficult for landlords to set appropriate rents and collect them stably, they have started leaving houses completely vacant.

Javier Milei, President of Argentina, is gesturing while delivering his inaugural speech in front of the crowd at the Federal Congress in Buenos Aires on the 10th (local time).
[Image source=AFP Yonhap News]

According to Argentina's national energy regulatory agency, out of 1,586,200 houses in Buenos Aires until February, an average of 228,500 houses per month were vacant without tenants. This statistic was estimated by counting households that use less electricity than required to operate a refrigerator.

Notably, this 'vacant house' figure was recorded before the recent sharp rise in inflation, yet it increased by 14% compared to the same period last year and by 57% since 2018.

As a result, Buenos Aires residents are struggling to find housing despite many homes being empty. Analysts have assessed that Argentina is facing the worst housing crisis in 30 years in its history.

Rent is also a problem. Currently, a '1-bedroom apartment' advertised in the city is rented for about 400,000 pesos. Levi, a 39-year-old office worker, told FT, "The rent for the house I contracted in 2021 was 46,000 pesos, but now a one-bedroom apartment in the city rents for 400,000 pesos per month."

Given the situation, some landlords are seeking alternatives, such as demanding payment in dollars instead of pesos from tenants. Argentina's largest real estate site, Zonaprop, reported that 70% of long-term rental contracts are priced in dollars. Three years ago, only 27% of contracts were in dollars.

Meanwhile, on the 12th, Argentine government official Javier Milei announced the first economic measures, including a strong peso devaluation and subsidy cuts. Accordingly, the artificially defended exchange rate, currently fixed at 400 pesos per dollar (according to the Central Bank's website), will be adjusted to 800 pesos per dollar.

This content was produced with the assistance of AI translation services.