Housing and food costs drive household budget cuts in Latin America

Rising housing and food costs are significantly impacting household budgets across Latin America and parts of Europe. In Latin America and the Caribbean, a study by Habitat for Humanity reveals that 75% of respondents have had to reduce other expenses to cover housing costs. This includes 33% cutting food spending, 32% using emergency savings, and 13% delaying medical care. The study notes that housing costs are also making it difficult for 56% of respondents to consider starting a family.

In Argentina, the situation is exacerbated by high inflation, with the basic food basket increasing by 50% over the last two years, forcing families to use strategic shopping lists to manage costs. Similarly, in Panama, monitoring by Acodeco shows that the basic food basket costs approximately B/. 304.68 in supermarkets, while it reaches B/. 355.21 in smaller grocery stores, a difference of over 16%.

In Buenos Aires, Argentina, research from CESBA and Fundar indicates that housing and services have seen a significant increase in relative prices, with rent consuming more than half of the income for the bottom 40% of households. The number of renters in the city has also risen from 22% in 2001 to nearly 37% in 2022.