Tenant Households and Housing-Induced Poverty in Argentina

Abstract

Introduction

In Argentina, nearly half of tenant households allocate more than 30% of their income to housing-related expenses. However, this measure does not account for the cost of other equally essential needs.

Objective

To estimate the extent of the rental housing affordability crisis in Argentina during 2017-2018 using a residual income approach, taking the poverty line as a reference.

Methodology

Using data from the 2017–2018 National Household Expenditure Survey and the poverty line, percentages of tenant households experiencing housing-induced poverty are estimated based on various sociodemographic characteristics and compared to those obtained using the 30% threshold. Subsequently, multivariate logistic regression analyses are conducted to identify which of these characteristics are associated with a higher probability of experiencing financial overburden from a residual income perspective.

Results

The percentages of households with housing-induced poverty are similar to those estimated using the 30% threshold but show a significantly different distribution according to the sociodemographic composition of households. Tenant households with greater economic dependency, mainly those with children, and/ or headed by young individuals, with low education attainment and in low-skilled jobs, are more likely to face affordability problems.

Conclusions

A residual income approach enables a more accurate analysis of the constraints faced by tenant households by highlighting poverty resulting from housing cost burdens, especially due to high rental costs.