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An expert reveals how much of your salary you should spend on rent to make ends meet - La Nacion Propiedades
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www.lanacion.com.ar
June 02, 2024
Rent is part of many people's personal finances. What percentage of your salary should be spent on rent to cover the rest of your expenses?
Maria Josefina Lanzi
It is important to know what percentage of your salary should be spent on rent, in order to pay for the rest of your household needs.Toribio Achaval
Living in a rented house or apartment is a reality for many Argentines. In recent years, the number of owners is decreasing and the number of people living in rented housing is increasing. In this regard, experts explain what percentage of the salary should be allocated to paying rent , in order to make proper use of the salary.
“According to the 2022 Census, there are about 3.3 million rented households . In terms of number of people, there are just over 10 million , ” says Federico González Rouco, an economist on the Empiria team, Hernán Lacunza’s consultancy firm.
Rentals: According to the 2022 Census, there are nearly 3.3 million rented householdsshutterstock - Shutterstock
In this sense, it is crucial to know how much percentage should be allocated to paying rent , in order to do the math and not fall behind on paying other needs. Rouco points out that “ it is difficult to say what should be, but 30% or 35% is usually established as the international reference limit. More than that and we begin to talk about housing overload in household expenses.” He explains that in some cases it varies with time, source and country, but it always moves within that range.
The Organisation for Economic Co-operation and Development (OECD) states that on average 40% of one's salary should be spent on rent (although in this case this includes the mortgage or rental fee , but also utilities) in order to cover the rest of the monthly expenses.
According to figures from Daniel Bryn, head of Invertire, in May an Argentine couple in CABA spent 26% of their salary on rent. The graph takes two average salaries of an employee according to the Ministry of Labor RIPTE and compares it with the evolution of the average rent for a two-room apartment according to Zonaprop. Although the figure has been declining, it peaked in February, when that percentage reached 36%.
The percentage of salary that a couple spent on rent in May was 26%To reverse
Bryn adds to the analysis the number of days of the month that a couple must work to pay the rent . Taking as a reference two average salaries of an employee in a dependent relationship according to the Ministry of Labor (RIPTE) and comparing it with the evolution of the average rent of a two-room apartment according to Zonaprop data, in the month of May 2024 it was necessary to work 7.88 days of the month to be able to pay the rent of a two-room apartment in CABA. Again, in this case there was a peak in February 2024, when it was necessary to work 10.95 days of the month, a figure that has been falling since then.
In the month of May 2024, it was necessary to work 7.88 days a month to be able to pay the rent for a two-room apartment in CABATo reverse
Since the repeal of the rental law, which took place with Javier Milei's DNU, owners have been putting their homes up for rent againPatricio Pidal/AFV
Little by little, property owners began to put their properties back on the market and, more than six months after the repeal of the rental law , the figures are different: they have accumulated an increase of 150% so far this year.
Regarding listing prices, rental prices for properties located in the City of Buenos Aires registered a slight increase in listing prices in May, 2.3 %. However, this shows a sharp slowdown for the fourth consecutive month after increasing 21% in January and 18.6% in December, according to the index published every month by Zonaprop .
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Un especialista revela cuánto de tu sueldo deberías destinar al alquiler para llegar a fin de mes
El pago del alquiler forma parte del cálculo de las finanzas personales de muchas personas. ¿Cuál es el porcentaje de tu sueldo que debería destinarse a pagarlo, para llegar a cubrir el resto de los gastos?
www.lanacion.com.ar
June 02, 2024
Rent is part of many people's personal finances. What percentage of your salary should be spent on rent to cover the rest of your expenses?
Maria Josefina Lanzi
It is important to know what percentage of your salary should be spent on rent, in order to pay for the rest of your household needs.Toribio Achaval
Living in a rented house or apartment is a reality for many Argentines. In recent years, the number of owners is decreasing and the number of people living in rented housing is increasing. In this regard, experts explain what percentage of the salary should be allocated to paying rent , in order to make proper use of the salary.
“According to the 2022 Census, there are about 3.3 million rented households . In terms of number of people, there are just over 10 million , ” says Federico González Rouco, an economist on the Empiria team, Hernán Lacunza’s consultancy firm.
Rentals: According to the 2022 Census, there are nearly 3.3 million rented householdsshutterstock - Shutterstock
In this sense, it is crucial to know how much percentage should be allocated to paying rent , in order to do the math and not fall behind on paying other needs. Rouco points out that “ it is difficult to say what should be, but 30% or 35% is usually established as the international reference limit. More than that and we begin to talk about housing overload in household expenses.” He explains that in some cases it varies with time, source and country, but it always moves within that range.
The Organisation for Economic Co-operation and Development (OECD) states that on average 40% of one's salary should be spent on rent (although in this case this includes the mortgage or rental fee , but also utilities) in order to cover the rest of the monthly expenses.
How much do Argentinians spend on rent?
“Data from the latest population and housing census show that in 2022 the number of homeowners in Argentina covered 65% of the population, ten percentage points below 2010 and on a downward trend since 1991,” notes Federico González Rouco’s book, El sueño de la casa propia , adding: “Currently, in the city of Buenos Aires only half of the population is a homeowner (the other half includes tenants, but also other types of tenure, such as borrowing).”According to figures from Daniel Bryn, head of Invertire, in May an Argentine couple in CABA spent 26% of their salary on rent. The graph takes two average salaries of an employee according to the Ministry of Labor RIPTE and compares it with the evolution of the average rent for a two-room apartment according to Zonaprop. Although the figure has been declining, it peaked in February, when that percentage reached 36%.
The percentage of salary that a couple spent on rent in May was 26%To reverse
Bryn adds to the analysis the number of days of the month that a couple must work to pay the rent . Taking as a reference two average salaries of an employee in a dependent relationship according to the Ministry of Labor (RIPTE) and comparing it with the evolution of the average rent of a two-room apartment according to Zonaprop data, in the month of May 2024 it was necessary to work 7.88 days of the month to be able to pay the rent of a two-room apartment in CABA. Again, in this case there was a peak in February 2024, when it was necessary to work 10.95 days of the month, a figure that has been falling since then.
In the month of May 2024, it was necessary to work 7.88 days a month to be able to pay the rent for a two-room apartment in CABATo reverse
How much has the rent gone up in the last month?
Since the end of the pandemic, the rental supply in the city has experienced a constant decline, reaching a historic low of 4,700 listings in February 2023. Since the repeal of the rental law, which took place with Javier Milei's DNU, the market has begun to recover .
Since the repeal of the rental law, which took place with Javier Milei's DNU, owners have been putting their homes up for rent againPatricio Pidal/AFV
Little by little, property owners began to put their properties back on the market and, more than six months after the repeal of the rental law , the figures are different: they have accumulated an increase of 150% so far this year.
Regarding listing prices, rental prices for properties located in the City of Buenos Aires registered a slight increase in listing prices in May, 2.3 %. However, this shows a sharp slowdown for the fourth consecutive month after increasing 21% in January and 18.6% in December, according to the index published every month by Zonaprop .
www.buysellba.com
