Argentina renters spend 42.8% of income as deregulated leases hit 24 months

How the deregulated rental market works

Argentina repealed its 2020 Rental Law (Ley 27.551) through Necessity and Urgency Decree 70/2023, signed by President Javier Milei on Dec. 20, 2023. The decree stripped out the national framework that had required three-year minimum contracts, peso-denominated rents and adjustments tied to a single official index.

New leases now fall under general Civil and Commercial Code rules and free negotiation. Most contracts run 24 months instead of 36, with adjustment clauses every three, four or six months tied to inflation (CPI) or the Central Bank's rental index (ICL). Landlords and tenants can also agree to price rents in U.S. dollars, a practice that was effectively barred under the prior law.

Contracts signed before the repeal remain valid until they expire and the bulk of those leases run out between late 2024 and early 2027. By June 2026, typical adjustments land around 8% to 11% for quarterly updates, 15% to 16% for semi-annual updates and roughly 32% for annual updates still tied to the old index, per market reports from Buenos Aires.

Who feels the squeeze

Renters make up about 21% of households nationwide and 36.8% in the City of Buenos Aires, so the shift touches a wide slice of the population. A December 2024 national tenants' survey found renter households spending 42.8% of income on rent.

Foreign tenants paying in pesos face the same inflation-linked hikes as locals, which complicates budgeting when foreign-currency income doesn't keep pace. Those paying in dollars in neighborhoods like Palermo and Recoleta avoid the indexation churn but lock in premium pricing. In lifestyle hubs like Bariloche, owners have shifted units to short-term tourist and nomad rentals, tightening long-term supply.

What to expect when signing a lease

Leases are private contracts, usually in Spanish, with terms set by negotiation rather than statute. Landlords commonly ask for:

• One month's rent as a security deposit, sometimes more for dollar-denominated leases or tenants without a local guarantor
• First month upfront, plus additional months in advance in high-demand areas
• A garantía (property-owner guarantor or a seguro de caución surety policy)
• Agency and administrative fees, typically paid by the tenant

Listings have surged since the repeal, with some real-estate trackers citing supply growth above 170%, though rents have stabilized at a higher baseline. Long-stay foreigners should confirm the adjustment frequency and reference index before signing, since a CPI-linked quarterly clause can compound quickly. For current visa and residency context, see our nomad news coverage.

Read our full Argentina guide for the complete picture.