Global Cities and Affordable Housing: Buenos Aires

By Michael Amerson, Program Analyst, Research Utilization Division

Various housing programs in Buenos Aires aim to provide solutions for residents seeking affordable housing. Photo credit: iStock.com/Starcevic

Buenos Aires, Argentina's vibrant and bustling capital, is the country's largest city: a melting pot of cultures and a hub of economic activity. Most of Buenos Aires' population is of European ancestry, with most being of Italian and Spanish descent. Although Roman Catholicism is the predominant religion in Buenos Aires, the city is also home to Jewish, Protestant, Orthodox, and Muslim communities; in fact, Buenos Aires is home to the largest Jewish community in Latin America and the second-largest in the Americas.

Despite being a popular tourist destination, Buenos Aires has been economically stagnant in recent years. Although this economic decline is not as severe as in the rest of Argentina, the city's urban population is gradually relocating to the outskirts. The city's population is still growing, albeit slowly. Greater Buenos Aires will have a projected population of 13.6 million by 2025 and 14 million by 2030.

The banking sector in Buenos Aires dominates the country's financial industry. The city's banks hold most of the nation's deposits, including a significant portion held by international investors. The Central Bank of the Argentine Republic regulates the federal banking system.

The primary industries in Buenos Aires are food processing; metalworking; automobile assembly; oil refining; printing; publishing; and the manufacturing of textiles, beverages, paper, and chemicals.

As with many global cities, affordable housing is a pressing challenge for Buenos Aires. The longstanding housing struggles facing the city's renters worsened following a significant devaluation of the peso in December 2023, leading to increased inflation and decreased purchasing power. In that month alone, prices in Argentina rose by 25.5 percent, exacerbating the effects of the ongoing economic crisis. Joaquin Tomé, a master in urban planning candidate at the Harvard Graduate School of Design and a Fullbright Fellow, who was born and raised in Buenos Aires, summarized the city's housing struggles:

When I think in San Francisco, London, or New York, usually one of the first things that come to my mind is how unaffordable housing is for the people living there. However, I'm well aware not only for my academic understanding but also my personal experience; this is not a problem exclusively of these metropolises or even the Global North. If there is a common issue in most of today's megalopolises, both in the Southern and Northern Hemispheres, this is the crisis of the housing market. This is the case in the Buenos Aires Metropolitan Area (AMBA), where I was born and raised, Argentina's main and largest urban area. With around 15 million people, this massive metropolis encompasses the City of Buenos Aires (CBA) and 40 surrounding municipalities in the Province of Buenos Aires (PBA), larger in surface than the entire island of Puerto Rico. The right to housing is recognized by the Argentine National Constitution (Article 14bis) and most families aspire to purchase a home. However, the housing crisis in this region has only worsened in the last couple of years, becoming one of the most pressing issues for local dwellers and local and national governments are not doing enough about it.

Roughly 10 percent of Argentina’s population of more than 44 million live in informal settlements. Various housing programs and initiatives, however, aim to provide solutions for Buenos Aires residents who are seeking affordable housing.

One such program is the Procrear II program, a home loan program designed to facilitate housing access. This program addresses a range of housing needs through urban development policies and the creation of new public spaces and infrastructure to build community. The program complements the National Urban Land Plan by making high-quality urban land available for housing construction. By offering a range of financing options and support, Procrear II strives to make homeownership more attainable for Buenos Aires residents. Although the program currently is on hiatus, the Ministry of Territorial Development and Habitat will use its official channels to announce any news and new registration openings for the Urban Developments credit line.

Another program, the Self-Managed Housing Program (Programa de Autogestión en Vivienda, or PAV) in Buenos Aires, is a unique government initiative that has produced 1,261 cooperative housing units since 2000. PAV stands out by providing housing for low-income families and empowering them through a self-management approach. The program offers technical and financial assistance to support community-led housing projects, allowing residents to construct and develop their own homes.

PAV emphasizes community involvement, self-organization, and empowerment. It allows residents to take control of the housing process while receiving reliable guidance and resources from the government. By promoting self-management and collaboration, the program aims to address housing needs in a sustainable and participatory way, fostering a sense of ownership and pride within local communities.

PAV offers participants numerous benefits, including the opportunity to acquire land, access comprehensive technical support for architectural and construction planning, and receive substantial financial aid to purchase building materials. The program also actively encourages residents to form cooperatives, fostering community and resident involvement. PAV also provides participants with extensive training on construction techniques, legal assistance with the construction process, and project management. These resources empower residents to become active agents in improving their living conditions, making PAV a desirable option for low-income families.

Overall, PAV represents a collaborative and inclusive approach to housing development. It promotes self-sufficiency, community engagement, and, most important, the realization of dignified living spaces for vulnerable residents regardless of income. This commitment to dignity and respect for all participants is a key aspect of the program.

Fortunately, Buenos Aires is home to programs such as these that provide valuable resources, guidance, and support for those navigating the housing market. By tapping into these networks, individuals can gain insight into potential housing opportunities and connect with like-minded individuals who also are seeking affordable living arrangements in the city.

Ultimately, these housing programs aim to create more inclusive and sustainable communities by ensuring that residents can access safe, affordable, and stable housing. By taking advantage of the available resources and support networks, individuals can work toward securing housing in Buenos Aires that meets their needs and contributes to their overall well-being.