Rising Rental Costs in Spain: Half of Salaries Now Spent on Rent
Spaniards now spend half their salary on rent, study finds
Euronews
Image: Euronews
A recent study reveals that Spaniards are now spending an average of 50% of their salaries on rent, a significant increase from 38% in 2019. This surge is attributed to a 30% rise in rental prices since 2022 and a severe shortage of new housing construction.
- 01Rental prices in Spain have surged by approximately 30% since 2022.
- 02New housing construction has averaged only 83,000 homes annually since 2010, far below the historical average of 315,000.
- 03Spaniards now allocate an average of 50% of their salary to rent, with regional disparities ranging from 29% to 71%.
- 04Young people are particularly affected, spending around 35% of their budget on rent, exceeding the recommended maximum of one-third of income.
- 05Public housing in Spain constitutes only 1.5% to 3.3% of total housing, significantly lower than the EU average of 9.3%.
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Spain is grappling with a severe housing crisis, as highlighted by a recent study indicating that renters now spend an average of 50% of their salaries on rent, a notable increase from 38% in 2019. This surge correlates with a 30% rise in rental prices since 2022 and a drastic decline in new housing construction, which has languished at record lows of 83,000 homes annually since 2010, compared to an average of 315,000 between 1970 and 2010. The Bank of Spain has reported that public housing is alarmingly insufficient, making up only 1.5% to 3.3% of total housing stock, while the EU average is 9.3%. The property portal Fotocasa noted regional disparities, with residents in Madrid spending up to 71% of their income on rent, while those in Extremadura spend only 29%. Young individuals are particularly affected, dedicating approximately 35% of their income to rent, surpassing the ideal threshold of one-third of their income.
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The rising rental costs significantly affect the financial stability of renters, particularly young individuals, leading to potential increases in housing insecurity.
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