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The impact of lack of access to housing: 2.5 million young people aged between 25 and 35 live with their parents or grandparents - Infobae
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El impacto de la falta de acceso a la vivienda: 2,5 millones de jóvenes de entre 25 y 35 años viven con sus padres o abuelos
Equivalen al 38% de ese grupo de edad de la población argentina. Es una situación que persiste hace al menos dos décadas. Actualmente, el alquiler de un monoambiente equivale al 70% del salario promedio de los trabajadores más jóvenes. Algunos datos de otros países
www.infobae.com
September 1st, 2024
They represent 38% of that age group of the Argentine population. This is a situation that has persisted for at least two decades. Currently, renting a studio apartment is equivalent to 70% of the average salary of the youngest workers. Some data from other countries
By Jose Luis Cieri
The image shows a young couple making arrangements to move, reflecting the significant challenge faced by Argentines between 25 and 35 years old to achieve emancipation from their family homes (Illustrative image Infobae)
In Argentina, the lack of access to housing has been a persistent and challenging problem for several years. According to a report by the Tejido Urbano Foundation, some 2.3 million young people between 25 and 35 years of age live with their parents or grandparents, which is equivalent to 38% of that age group.
This situation, which has persisted for at least two decades, reflects a latent and unmet demand for housing and the existence of significant barriers to the independence of young people.
Historically, the percentage of unmarried young people in the country has seen considerable fluctuations, as shown by statistics from the National Institute of Statistics and Census (Indec). In fact, Infobae reported a few days ago that renting a studio apartment is equivalent to 70% of the average salary of the youngest workers in the city of Buenos Aires.
In 2004, 35% of young people had not achieved housing “independence,” a proportion that fell to 31% in 2012, the lowest level recorded since then. As of 2016, reports from the Permanent Household Survey (EPH) and the National Household Expenditure Survey (ENGHo) indicate that the percentage of unemancipated young people has remained at an average of 39 percent.
Fernando Alvarez de Celis , executive director of the Tejido Urbano Foundation, explained to Infobae that the high proportion of young Argentines between 25 and 35 years old who still live with their parents or grandparents is due to a combination of economic and cultural factors. “Economic reasons predominate, such as the lack of mortgage credit, which although it was reintroduced four months ago, has high costs and the need for an advance payment of up to 25% of the value of the home, which complicates the purchase of property for those who do not have solid savings. In addition, high rental values can consume a large percentage of the income of this age group.”
Cultural influences such as the later age of marriage and childbearing, as well as the decision of young university students to remain at home while studying, also play an important role.
Although the rental market is stabilising and the initial prices of new contracts are tending to fall , values remain high, making it difficult for young people or couples to meet monthly expenses in a cost of living context that has been difficult for more than 20 months. Only now is inflation slowing down.
In CABA, the average rent for a two-room apartment is $485,000 according to Zonaprop, and several sectors have not yet fully recovered from the drop in their income, which prevents households from achieving financial independence.
Shortcomings
The study revealed that, in 2023, the number of unemancipated young people rose again to 2.3 million, the aforementioned 38% of the group in question.Although these data suggest a slight improvement compared to previous years, the problem persists as a structural challenge. The ability of households to generate sufficient income and the need for effective public policies to increase access to housing are crucial factors to resolve this situation, according to the Tejido Urbano Foundation.
The international situation shows an equally varied picture. In the United States, for example, the percentage of young people living in family homes has increased from less than 20% to more than 30% between 1999 and 2014. In Europe, countries such as the Netherlands and Germany have maintained relatively stable rates or even seen slight reductions, while in France, the United Kingdom and Italy the figures have increased.
Source: Federico González Rouco (economist and sector expert) with data from INDEC for the Tejido Urbano Foundation
To achieve levels of emancipation comparable to those of the Netherlands, Germany or France, Argentina would need a significant decrease in the number of unemancipated young people, estimated at one million. This change would require a profound transformation in the country's socio-housing matrix, including improvements in access to rental and the availability of mortgage loans.
Scenario and what is missing
Regarding the impact of the construction of new units on the real estate market and the demand for housing, Álvarez de Celis stressed that, although there is a deficit of 1,000,000 homes in Argentina, current developments do not meet this need because they are aimed at higher income segments and exclude young people.This intensifies stress in the market due to the lack of adequate and affordable housing, aggravated by a critical shortage of housing credit.
Representative scene of a young couple discussing or evaluating the purchase or rental of a home. Economic factors and cultural norms regarding the age of maturity significantly influence the differences observed in youth cohabitation patterns at a global level (Illustrative image Infobae)
The study pointed out significant regional differences in the levels of youth emancipation in Argentina. In the north of the country, half of people between 25 and 35 years old still live with their parents. In contrast, in cities such as Buenos Aires, La Plata, Rosario and Córdoba, where there is more employment and universities, “only three out of ten young people remain in the family home,” said Álvarez de Celis.
In international terms, Argentina shows a high percentage of young people living with their families, comparable to Italy, where nearly 40% of young people still reside with their parents. In the United States and some European countries, the percentages vary considerably, with more stable economies showing lower rates of youth cohabitation.
As regards public policies that could promote access to home ownership, it is crucial to develop measures that provide mortgage loan options adapted to the budgets of young people.
Álvarez de Celis highlighted the importance of mortgage financing and proposed the implementation of credit policies that address the specific needs of young people, including flexible work and family conditions.
“We should adopt policies similar to those in Uruguay and Chile, where affordable housing is offered specifically for young people. This could revitalize the real estate market and facilitate the independence of this demographic segment,” he concluded.
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