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The problem faced by those over 60 years old and which has worsened in the last 20 years
Source:
www.lanacion.com.ar
October 04, 2024
The number of seniors who rent has doubled in 20 years: this was revealed in a report based on the Permanent Household Survey for the first quarter of 2024
By Maria Josefina Lanzi
The number of seniors renting has doubled in 20 years Shutterstock - Shutterstock
In a market where mortgage credit has recently re-emerged, hopes for fulfilling the long-awaited dream of owning a home are growing . And this is a desire that reaches the young population that has not yet purchased its first home, but also the adult population, since, according to data published by the Tejido Urbano Foundation, the number of older adults who rent has doubled in 20 years.
The report takes data from the Permanent Household Survey for the first quarter of 2024 and reveals that of the 4,965,057 individuals that make up the population over 60 years of age in Argentina, 359,754 are renters. This represents “7.25% of the older adult population and 6.58% of the total number of renters nationwide ,” the report states.
Sources agree that the lack of mortgage loan supply in Argentina was a decisive factor in accessing home ownership Shutterstock
“ It doesn't surprise me, it's not a temporary problem, but a problem that has been going on for several years ,” says economist Federico González Rouco, who recently published the book El sueño de la casa propia (The Dream of Owning a House) , adding: “ A serious demographic problem is coming, the situation will get worse and worse, if we take into account that 40% of young people between 25 and 30 years old have not yet left home and live with their parents or grandparents.”
“ These are still low numbers ,” says Fernando Álvarez de Celis, executive director of the Tejido Urbano Foundation, although he adds: “In any case, a generation of people is beginning to appear in Argentina who find it difficult to own property , a situation that is gradually beginning to worsen.”
“ In countries where inflation is persistent and constant over time, it is logical that there are fewer homeowners , since this destroys all types of credit or savings. Loans are now working because inflation is stabilizing,” explains Soledad Balayan, owner of Maure Inmobiliaria.
Of the 4,965,057 individuals that make up the population over 60 years of age in Argentina, 359,754 are tenants Shutterstock - Shutterstock
Rouco shares Balayan’s view and says that “this reality has many causes that are a reflection of the recession and the consequence of the stagnation of the last 30/40 years.” He explains that someone who is 65 today was 30/35 years old in the 90s, when mortgage credit was at its best and represented 5% of GDP. In other words, “all the debt we had represented 5% of what is produced in a year in Argentina. Anyone has the idea that at that time we were in a very good time, but in international comparison it was nothing outstanding. Today Chile has 27% to 28%; the United States, 75% to 80%. And at our best we had only 5%.”
The report also details that there are different realities at a geographical level in the number of older adults who rent. “While provinces such as Corrientes, Catamarca, Santiago del Estero and Resistencia have a low proportion of older people who rent, in the Autonomous City of Buenos Aires this proportion is considerably higher ,” reveals the study and adds: “Other cities such as La Plata, Santa Fe, Neuquén, Mendoza and Río Gallegos also register a relevant proportion of older adults who rent.”
Regarding this reality, Rouco explains that in large cities there are fewer and fewer property owners, because they have a different development dynamic, with positive reasons: “ As they grow, stronger and more dynamic labor markets are created, a greater educational offer that generates attraction for people to move there, but who are not necessarily going to settle down and buy a property .” In addition, he explains that each city has a specific factor that encourages this reality: Neuquén has oil development, which leads many to rent, La Plata is a university city, etc.
Even so, the number of people who belong to this age group and who live in CABA and rent, can be alarming, since, in the words of Álvarez de Celis, “ 15.6% of older adults in the City of Buenos Aires rent, a percentage that is very worrying, since it doubles the national average and can generate a structural economic problem .”
CABA properties Shutterstock
According to data from the EPH for the first quarter of 2024, the monthly income of elderly tenants ranged between $135,000 and $276,500. Considering that the average rent for a one-bedroom apartment in the Autonomous City of Buenos Aires was $416,991 in February, according to Zonaprop data, the question arises as to what type of housing - in terms of condition - a person with this income can access (without taking into account the need to cover other basic needs, such as food and medicine).
The household structure figures also reveal that there are risks of being exposed to greater social isolation and economic difficulties, since half of this population lives alone or with their spouse, both of whom are elderly. In addition, Álvarez de Celis highlights that “40.52 % of older adults who live alone are in the first income decile, the lowest, which indicates a very fragile economic situation .” In this regard, the report adds: “When considering the first four deciles, which group the lowest-income sectors, it is observed that 72.7% of single-person older adults are in this low-income category.”
The report encourages providing a solution that responds to all the challenges of this stage of life, not just the need to provide a roof. “A housing policy focused on this population is required ,” it highlights, where housing alternatives are generated that respond to the specific challenges of this stage, such as loneliness, reduced mobility and economic precariousness.
www.buysellba.com
Source:
El problema que enfrentan quienes tienen más de 60 años y que empeoró en los últimos 20
En 20 años se duplicó la cantidad de adultos mayores que alquilan: lo reveló un informe que tomó de base la Encuesta Permanente de Hogares del primer trimestre de 2024
www.lanacion.com.ar
October 04, 2024
The number of seniors who rent has doubled in 20 years: this was revealed in a report based on the Permanent Household Survey for the first quarter of 2024
By Maria Josefina Lanzi
The number of seniors renting has doubled in 20 years Shutterstock - Shutterstock
In a market where mortgage credit has recently re-emerged, hopes for fulfilling the long-awaited dream of owning a home are growing . And this is a desire that reaches the young population that has not yet purchased its first home, but also the adult population, since, according to data published by the Tejido Urbano Foundation, the number of older adults who rent has doubled in 20 years.
The report takes data from the Permanent Household Survey for the first quarter of 2024 and reveals that of the 4,965,057 individuals that make up the population over 60 years of age in Argentina, 359,754 are renters. This represents “7.25% of the older adult population and 6.58% of the total number of renters nationwide ,” the report states.
Sources agree that the lack of mortgage loan supply in Argentina was a decisive factor in accessing home ownership Shutterstock
“ It doesn't surprise me, it's not a temporary problem, but a problem that has been going on for several years ,” says economist Federico González Rouco, who recently published the book El sueño de la casa propia (The Dream of Owning a House) , adding: “ A serious demographic problem is coming, the situation will get worse and worse, if we take into account that 40% of young people between 25 and 30 years old have not yet left home and live with their parents or grandparents.”
“ These are still low numbers ,” says Fernando Álvarez de Celis, executive director of the Tejido Urbano Foundation, although he adds: “In any case, a generation of people is beginning to appear in Argentina who find it difficult to own property , a situation that is gradually beginning to worsen.”
Why are there more and more seniors who do not have access to their own home?
The sources consulted agree that the lack of mortgage loan offers in Argentina was a decisive factor in accessing home ownership . “These numbers are explained, in part, by the absence of structural mortgage credit in our country, that is, there is supply for two or three years, but not for a long process that allows people to buy,” explains Álvarez de Celis, who adds that between 2001 and 2002 the price of properties shot up in relation to income, which further hindered the possibilities of accessing one’s own home.“ In countries where inflation is persistent and constant over time, it is logical that there are fewer homeowners , since this destroys all types of credit or savings. Loans are now working because inflation is stabilizing,” explains Soledad Balayan, owner of Maure Inmobiliaria.
Of the 4,965,057 individuals that make up the population over 60 years of age in Argentina, 359,754 are tenants Shutterstock - Shutterstock
Rouco shares Balayan’s view and says that “this reality has many causes that are a reflection of the recession and the consequence of the stagnation of the last 30/40 years.” He explains that someone who is 65 today was 30/35 years old in the 90s, when mortgage credit was at its best and represented 5% of GDP. In other words, “all the debt we had represented 5% of what is produced in a year in Argentina. Anyone has the idea that at that time we were in a very good time, but in international comparison it was nothing outstanding. Today Chile has 27% to 28%; the United States, 75% to 80%. And at our best we had only 5%.”
The report also details that there are different realities at a geographical level in the number of older adults who rent. “While provinces such as Corrientes, Catamarca, Santiago del Estero and Resistencia have a low proportion of older people who rent, in the Autonomous City of Buenos Aires this proportion is considerably higher ,” reveals the study and adds: “Other cities such as La Plata, Santa Fe, Neuquén, Mendoza and Río Gallegos also register a relevant proportion of older adults who rent.”
Regarding this reality, Rouco explains that in large cities there are fewer and fewer property owners, because they have a different development dynamic, with positive reasons: “ As they grow, stronger and more dynamic labor markets are created, a greater educational offer that generates attraction for people to move there, but who are not necessarily going to settle down and buy a property .” In addition, he explains that each city has a specific factor that encourages this reality: Neuquén has oil development, which leads many to rent, La Plata is a university city, etc.
Even so, the number of people who belong to this age group and who live in CABA and rent, can be alarming, since, in the words of Álvarez de Celis, “ 15.6% of older adults in the City of Buenos Aires rent, a percentage that is very worrying, since it doubles the national average and can generate a structural economic problem .”
CABA properties Shutterstock
Other problems of the elderly
But the difficulties for this segment of the population do not end there, as the study collects data related to the state of the home and income, which, according to the report, "reflect the existence of a structural housing problem that affects both those who have not managed to access property, as well as those who live in precarious conditions."According to data from the EPH for the first quarter of 2024, the monthly income of elderly tenants ranged between $135,000 and $276,500. Considering that the average rent for a one-bedroom apartment in the Autonomous City of Buenos Aires was $416,991 in February, according to Zonaprop data, the question arises as to what type of housing - in terms of condition - a person with this income can access (without taking into account the need to cover other basic needs, such as food and medicine).
The household structure figures also reveal that there are risks of being exposed to greater social isolation and economic difficulties, since half of this population lives alone or with their spouse, both of whom are elderly. In addition, Álvarez de Celis highlights that “40.52 % of older adults who live alone are in the first income decile, the lowest, which indicates a very fragile economic situation .” In this regard, the report adds: “When considering the first four deciles, which group the lowest-income sectors, it is observed that 72.7% of single-person older adults are in this low-income category.”
The report encourages providing a solution that responds to all the challenges of this stage of life, not just the need to provide a roof. “A housing policy focused on this population is required ,” it highlights, where housing alternatives are generated that respond to the specific challenges of this stage, such as loneliness, reduced mobility and economic precariousness.
www.buysellba.com
