property
Buenos Aires Deregulation Shifts Power to Renters, Cuts Landlord Returns
A sharp rise in available units since deregulation has shifted bargaining power toward renters even as nominal prices climb.
How we reported this
Buenos Aires rental supply surged by approximately 170-175% after the 2023 deregulation law DNU 70/2023, lifting vacancy rates from near zero in 2023 to about 4% in early 2026. The change has given tenants more choices and reduced competition for units while leaving many landlords with properties that generate negligible cash flow.
Supply Growth Alters Tenant and Landlord Positions
The expanded inventory has directly improved tenant circumstances by lowering the urgency to secure any available apartment. Landlords now compete for occupants in a market where units sit longer before leasing, reducing their ability to demand premium terms or quick commitments. This dynamic stems directly from the post-deregulation influx of listings rather than broader economic shifts.
Nominal Price Rises Mask Real Declines
Rental prices in Buenos Aires rose over 32% year-on-year in Q4 2025, with studios up 34.1%, two-bedroom units up 33.6%, and three-bedroom units up 32.4%. As of early 2026 the average monthly rent for a studio apartment stands at roughly ARS 550,000 (≈USD 525), though USD-listed studios typically reach around USD 700. Despite these nominal increases, real rental prices fell nearly 27% in the first seven months after deregulation, and recent monthly rent growth such as the 1.4% recorded in June remains below prevailing inflation.
Low Yields Shift Investment Focus
Rental yields in Buenos Aires are extremely low or negligible post-reform because the market remains flooded with available units. Owners increasingly treat properties as capital gains vehicles instead of reliable cash-flow assets, a direct consequence of the oversupply created by the 2023 policy change. Tenants benefit from this environment through greater negotiating room on lease terms and move-in timing, while landlords must weigh holding costs against limited income potential.
Market participants continue to monitor how the balance between nominal gains and real losses evolves in coming quarters, with tenants positioned to compare multiple options and landlords evaluating longer-term holding strategies amid subdued returns.
This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.