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The Impact of the Chainsaw-Liberation on the Rental Housing Market in Buenos Aires

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  • Elfert, Martin
  • Thomsen, Stephan L.

Abstract

This paper examines the effects of Argentina’s repeal of the rental law in December 2023, one of the most radical housing policy reforms in Latin America in recent decades. Using weekly data for Buenos Aires from 2023–2024 and applying a Regression Discontinuity Design, we provide causal evidence on short-term supply and price effects. Our results indicate a substantial revival of rental housing supply, while nominal and real rents declined, contrary to theoretical expectations of sharp increases. These findings suggest that deregulation mobilized previously withheld units, temporarily alleviating excess demand. Given Argentina’s volatile context, conclusions remain preliminary yet policy-relevant.

Suggested Citation

  • Elfert, Martin & Thomsen, Stephan L., 2025. "The Impact of the Chainsaw-Liberation on the Rental Housing Market in Buenos Aires," Hannover Economic Papers (HEP) dp-741, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    • Handle: RePEc:han:dpaper:dp-741
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    1. Guido Imbens & Karthik Kalyanaraman, 2012. "Optimal Bandwidth Choice for the Regression Discontinuity Estimator," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 79(3), pages 933-959.
    2. Richard Arnott, 1995. "Time for Revisionism on Rent Control?," Journal of Economic Perspectives, American Economic Association, vol. 9(1), pages 99-120, Winter.
    3. Sims, David P., 2007. "Out of control: What can we learn from the end of Massachusetts rent control?," Journal of Urban Economics, Elsevier, vol. 61(1), pages 129-151, January.
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    JEL classification:

    • K25 - Law and Economics - - Regulation and Business Law - - - Real Estate Law
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy

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