In three areas of Villa Crespo, now one of the most expensive neighborhoods in Buenos Aires, rent has risen over 46 percent from the first trimesters of 2016 to 2017 according to the Statistics and Census Bureau of the City of Buenos Aires. The increase varies according to the neighborhood, but on the whole, the cost of rent is rising much faster than the rate of inflation. On average, renters allocate between 35 and 45 percent of their incomes to pay the monthly rent. When you include other expenses such as gas, electricity, and water, the total cost of rent easily consumes more than half their incomes.
Looking to rent an apartment in the City? Here are the average monthly costs of different-sized pads in the first quarter of this year, next to how much they have increased from 2016 to 2017.
30 m2: AR $5,631, 36.8% increase
43 m2: AR $7,655, 30.3% increase
70 m2: AR $12,101, 28.4% increase
Below, you can see the average prices per barrio.
In sum, for a 3-bedroom apartment, the most expensive neighborhoods are Palermo, Belgrano, and Núñez, while the least expensive are Villa Luro, Floresta, and Liniers. According to the Buenos Aires Citizenry, rent in areas like Villa Crespo, Villa Urquiza, and Colegiales have increased the most (46.7, 39.3, and 39.1 percent respectively) because of their proximity to high-demand barrios like Palermo and Belgrano, which causes real estate to rise in value.
To put living costs in context, the median income of tenants is AR $17,628, and median household income is AR $31,174. This means that a three-bedroom apartment for a family costs nearly 40% of their earnings, not to mention utility expenses. The problem of sky-high rent in the City should not be lost on authorities: the number of people without homes in Buenos Aires has increased 20% since 2016, and it’s hard to imagine that this rate will mend itself if rent continues to climb.
How does the city plan to tackle rising living costs? The Buenos Aires government plans to pass a bill that would reduce rents, mostly by making landlords pay the commission of the real estate agents instead of burdening the tenant. Additionally, Congress is discussing the possibility of a tax deductible up to 40% of the rent cost. This could mean tenants save between 10 and 14 percent of rent a year, or an annual saving of AR $10,080 if you pay AR $6,000 monthly.