Libertarian Reforms in the Argentinian Housing Market
- besociety
- Aug 4
- 3 min read
Updated: Nov 21
In this article, we outline the basics of Argentina’s housing market, the challenges it has faced in recent years, the measures taken by the new libertarian government to address these challenges, and the major disadvantages of rent control.
In 2023, Argentina elected a political outsider, Javier Milei, as president. The ex-TV presenter and ultra-libertarian ran on a platform of cutting excessive government spending and oversight, which the country had experienced for years. He promised significant reductions in government department budgets and famously brandished a chainsaw during the election campaign when discussing cuts to the “parasitic” state. Despite generating controversy worldwide, Milei has achieved notable success in liberalising Argentina’s housing market.
Before Milei’s reforms, the previous government had implemented controls during the pandemic that restricted landlords’ ability to rent out properties. Landlords were required to lease homes for a minimum of three years. Shorter-term leases involved navigating complex contracts and legal loopholes. Those who did not resort to short-term agreements in 2020 faced a murky legal environment, leading to housing shortages as landlords were unwilling to risk renting without long-term security. In addition to being restrictive on property owners, tenants were required to pay rent in pesos, which had rapidly lost value due to inflation. Rent for a two-bedroom flat in the capital surged from 18,000 pesos a month to over 300,000 pesos by 2019. This extreme inflation affected everyone, particularly the poorest Argentinians, who struggled to keep up with rising costs across the economy. Milei warned that the economy would worsen before it improved.
So what has the president done in response? He has removed rent controls and regulations in the market. This newfound freedom has brought several benefits for both renters and property buyers. Over the past year, mortgage lending in Argentina has risen by 260%, reaching $3 billion. This increase is partly because banks, restricted from purchasing government bonds under Milei’s government, have taken more risks in the housing market. Removing rent controls has also encouraged growth and property sales. Once barriers were removed, rental supply increased by 170%, and rental prices fell by 40%. This demonstrates how reducing restrictions allows people to access housing more easily and affordably while enabling property owners to profit from previously vacant properties.
Beyond stimulating growth, rent controls often cause more harm than good. By capping how much landlords can earn, they reduce incentives to supply housing. This can lead to lower availability, as seen in Argentina, where as many as one in seven homes remained vacant following the 2020 rent controls. Rent controls can also reduce housing quality, as landlords have less motivation to maintain properties to a high standard.
In conclusion, after years of mismanagement and excessive bureaucracy in Argentina’s housing market, which punished landlords and renters alike, Milei has revitalised the sector through free-market, libertarian policies. Mortgage lending has surged, rental supply has increased, and rental costs have decreased. Furthermore, rent controls have been shown to be an ineffective method for managing housing markets, as they discourage landlords from renting out properties and maintaining their quality.
Written by – Finn Crowley & Paul Anderson
Position – Social Secretary & President
Date – 27/07/25
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