The real estate crisis in Chile is leading to a generation of people in the country being deprived of the opportunity to obtain their own home, said economist Felipe Berger, BioBioChile reported on May 5.
The real estate crisis in Chile has no solution in the short and medium term. This is because, unlike before the pandemic, fewer people in Chile are buying their own homes, largely due to rising mortgage rates and higher demands placed on borrowers by banks.
Another factor that affects the real estate market is the excess demand caused by the massive arrival of immigrants. In addition, this is combined with lower supply in the real estate market due to the decline in the construction industry. As a result, mortgage interest rates are expected to remain around 5%, a far cry from 2019 levels of around 2%.
Economist Felipe Berger noted that high rates are also driving up rental prices, which have risen 53% since the start of the pandemic.
“We are facing a quite critical situation in which people who today wanted to buy their own home cannot do so and will have to rent it.”– said the expert.
“This means that, most likely, and it must be said directly, there will be a generation in Chile that will not be able to access their own home. This is the result of all these conditions that we observe in the market,” added the economist.
It is also reported that rental properties in Chile are becoming increasingly scarce. For example, in 2022, rental housing had an average surface area of 226 square meters, while today it is around 172 square meters.
Source: Rossa Primavera
I am Michael Melvin, an experienced news writer with a passion for uncovering stories and bringing them to the public. I have been working in the news industry for over five years now, and my work has been published on multiple websites. As an author at 24 News Reporters, I cover world section of current events stories that are both informative and captivating to read.