A large number of Argentinians believe that the first tangible impact of the recently elected president, Javier Miller’s extreme liberal policies, is the worsening of inflation, which has led to the “liberation” of rents and an unimaginable increase in food prices.
Amid empty boxes and wrapped furniture, Thomas Cessilian (28 years old) is preparing to leave the neighborhood of Sabdra where he has been living for a long time, in February. The landlords did not renew his lease due to the “complicated economic situation,” which could be interpreted as them waiting for the market to stabilize in order to determine a higher rental allowance or to rent out the apartment for short periods on the “Airbnb” platform.
The independent film producer says, “I have lived my whole life in this neighborhood, and it is terrifying to feel like I am being evicted. It frustrates me because I am skilled with two degrees and four jobs, and it doesn’t make sense for me to have to move to a place that is 20 kilometers away from where I have always lived.”
The housing crisis in Buenos Aires is not new, where short-term rentals for foreigners who earn their salaries in dollars and no longer have to be paid in pesos are becoming increasingly common.
In November and December, inflation reached 12.8% and 25.5% respectively, meaning that inflation for the entire year of 2023 reached 211%. This is due to the loss of control over rents and commodity prices, as well as the consequences of a 50% decrease in the value of the peso in the early days of Javier Mili’s presidency.
For months, Thomas has been searching the real estate market anxiously, afraid of a possible change in his place of residence. However, all the rents he found are four times higher than his current rent or they require payment in dollars only, while staying in his current residence will cost him 50% of his monthly salary, which amounts to 700,000 pesos (850 dollars).
The head of the organization “Inquilinos Agregados” (United Renters) Khairbasiu Monius confirms that they receive desperate people who inform them that they do not know where they will live the next day.
He says that the situation in the real estate market is “very dangerous” and is expected to worsen in the future.
A presidential decree issued by the government of Milli in December 2020, which was amended in 2023, cancels the Rent Law, among other things. As a result, lease contracts are now subject to a “mutually agreed upon” agreement between the parties regarding the duration of the lease, rent increase mechanisms, and payment methods.
These contracts can even be paid in Bitcoin or any other cryptocurrency, or goods such as kilograms of beef or liters of milk, according to the Minister of Foreign Affairs and Foreign Trade, Diana Mundino, on her account on the “X” platform in December.
Her post received a lot of criticisms regarding the return of “isolation” to the “barter era”.
However, even the prices of meat and milk have become high, just like the prices of fruits, vegetables, and all other goods.
The economic expert Hernan Letcher explains that the depreciation of the currency is first reflected in import prices. However, whether the sector uses imported goods or not, all sectors raise their prices “to avoid falling behind.”
In addition, there is a direct impact of the currency devaluation in Argentina on prices. Furthermore, there is a tendency to adjust wages in later stages.
The large central market in Buenos Aires has become a mandatory stop for those looking to buy fresh products or large quantities, as well as for those seeking slightly cheaper prices.
Regardless of the weather, the retiree Maria Espindola (65 years old) rides the bus from the neighborhood where she lives, which is full of small shops, to shop at the large central market because it “saves her a little money”.
In her opinion, 53-year-old childcare provider Ana Albornoz says that the process of shopping has become a search for the cheapest prices for her, explaining, “In the past, I used to go to one supermarket, but now I go to several stores to compare and choose,” with differences that can reach hundreds of pesos or even more.
The real estate sector expects a “normalization” with the market within a few months, and perhaps an improvement in rental supply as more property owners are inclined to put their properties on a less regulated market.
However, the organization “Inkilinos Agropados” will not wait for that to happen, condemning a situation “unparalleled in the world”.
Therefore, legal measures have been taken to declare the invalidity of the presidential decree that was published in December, as one of the many appeals that have been filed against the Milly reforms that are currently affecting the daily lives of Argentinians.
(AFP)
