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The time demanded rises to about 25 years if half is saved and to almost half a century if 25% of the monthly salary is preserved. The total cost is already over $34.5 million. How construction values ??have evolved in recent years and when salaries equaled the value of one m2
Without credit, owning a home becomes a chimera
Without credit, owning a home becomes a chimera
The dream of owning a home is possible, but it requires 12 years of fully saved wages, without allocating a single peso to other expenses.
This relationship in itself assumes an extraordinary capacity for saving or assumes that the salaried person lives on other income or income. In the absence of these, if a saving of 50% of salary is assumed (a very high proportion), the necessary savings time doubles to more than 24 years), and quadruples to more than 48 years if the person preserves the 25% of his salary, a proportion that is still high, well above the historical savings rate of the Argentine economy.
To arrive at these values, Infobae took into account the cost per m2 measured by the Association of Construction SMEs of the Province of Buenos Aires (Apymeco). According to the entity, building one m2 required an investment of $344,543.44 in April, so a 100 m2 house reached a total cost of $34,454,344.
That month, according to data published by the Ministry of Labor, the average net salary of Argentine workers reached a value of $235,859. Therefore, an employee should work 146 consecutive months to build a 100 m2 house, allocating 100% of his income to that end.
Although it is a high number, it represents a relative reduction in the cost of housing in relation to six months ago. In October, the same relationship between the cost of construction and salaries resulted in a value of 153.6 months of salary to build a 100 m2 house. In the following months there were several fluctuations, but with a slowing trend, because materials, services and labor are increasing at a slower rate than workers salaries.
In any case, if historical data is analyzed, it is found that there are times when building becomes relatively affordable -in some months you can access more than one m2 per salary- and others when it becomes much more expensive. In the peaks of the highest relative cost per m2, there are periods in which there were important salary adjustments (by parities) or very marked rises in the value of materials, generally related to increases in the exchange rate.
On the other hand, it is important to clarify that the comparison takes into account the evolution of formal employment wages, but does not take into account the wages of informal workers, which are not only substantially lower than those registered, but have also lost much more ground to inflation in recent years.
You rise below inflation
According to the National Institute of Statistics and Censuses (Indec), during the first semester the Construction Cost Index (ICC) increased 44.9% in Greater Buenos Aires (GBA). In the same period, the Consumer Price Index (CPI) increased by 50.7%, that is, 5.8 percentage points more.
The greatest difference, according to the agency, was registered in the cost of labor, which in the first semester accumulated increased by 43.2%. Meanwhile, materials became more expensive by 44.9% and general expenses by 53.1%, always taking the January-June period as a reference.
Some construction services had increases above inflation in the first semester. REUTERS
Some construction services had increases above inflation in the first semester. REUTERS
In any case, it is possible to find some construction items that did rise above the general CPI. An example is the cost of renting a backhoe, which had a nominal increase of 81.6% in the first semester. The value of the tipper-type container (76.3%) and the loader (89.1%), among others, also rose above average.
Higher level of activity
According to a study carried out by the Institute of Statistics and Registration of the Construction Industry (Ieric), the level of activity in the sector -according to the levels of cement consumption- registered a year-on-year drop of 2.1 % in June, but closed the first semester with an accumulated growth of 0.9%.
“The level of consumption continues close to its all-time highs, remaining just below the record corresponding to the same month last year. On the contrary, it was the fourth time in history that more than one million tons were consumed in a month of June and the marks for the same month in 2015 and 2017 were exceeded, the other two years in which that threshold had been exceeded. ”, they specified.
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