Tom Ewart Smith
A NEW survey has revealed a worrying trend among Spanish consumers: growing pessimism around housing and employment.
According to the inaugural Termometro 5D consumer confidence report, compiled by research firm 40dB for Cinco Dias and El Pais, nearly half of Spaniards believe it is now more difficult to buy a home than it was six months ago.
With soaring property prices and stagnant wages, confidence in the housing market has slumped to just 30.1 points on a 100-point scale – placing it on the edge of what researchers classify as ‘severe pessimism.’
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The index, based on 6,000 interviews conducted between January and March, measures sentiment across five key areas: consumption, investment, saving, employment, and housing.
While the overall 5D Economic Climate Index remains stable at 46.1 points, housing stands out as the weakest link in the national mood.
Nearly 50% of those surveyed said fewer people in their social circles could afford to buy a home compared to half a year ago.
Only 9.4% reported seeing more people able to do so.
The data reflects a growing disconnect between income levels and property costs, with the cost of housing now consuming nearly 40% of an average salary, according to the Bank of Spain – its highest level in over a decade.
This sentiment emerges despite relative stability in everyday consumer behaviour.
Spaniards are largely maintaining their spending on groceries, dining out, and travel.
For instance, less than 10% said they plan to cut back on olive oil or fresh fish purchases.
However, when asked about larger financial decisions – particularly car purchases and property investment – the mood turns noticeably bleak.
Only 10% said they intend to buy a vehicle in the coming months, and investment confidence remained modest at 47.1 points.
The job market also registered anxiety. Despite record levels of employment affiliation and the lowest unemployment in 15 years, more than a third of respondents believed joblessness was on the rise.
The employment index came in at 42.5 points, showing moderate pessimism, particularly among younger people and those struggling to make ends meet.
The broader context helps explain these worries. At the time of the survey, geopolitical instability was mounting.
The US had begun ramping up tariffs, setting off a global trade dispute that spooked financial markets and deepened public concern.
Though these measures had not yet reached their peak, tensions were already rippling through Europe.
While Spain’s economic growth prospects currently outpace the eurozone average, the long-term impact of global uncertainty, housing unaffordability, and persistent inflation remains unclear.
