Dylan Wagemans
SPAIN’S housing crisis is hitting renters the hardest, with new figures showing that three out of four rental households cannot afford the upfront costs of buying a home in their area.
According to a new report by the Bank of Spain, renters – especially young people and foreigners – are increasingly priced out of the housing market.
Many face what the report calls ‘financial overexertion’, as soaring prices outpace wages.
The study reveals that average property prices in Spain have jumped nearly 40% over the past decade, while rents have increased more than 10% annually since 2022.
For many, renting is the only option, yet it’s becoming increasingly unaffordable.
The Bank warns that in cities like Madrid and Barcelona, the demand for housing has shifted heavily to rentals due to high purchase prices and limited access to mortgages.
The situation is especially bleak for young people.
Although their wages have grown slightly faster than those of older workers, this has not kept up with the cost of buying or renting a home.
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Between 2015 and 2023, housing prices rose over 20%, while salaries for under-34s increased just 11%.
The housing shortage is also fuelling the crisis.
Between 2022 and 2024, Spain saw a shortfall of up to 450,000 homes, half of which are needed in key urban and coastal areas like Madrid, Barcelona, Valencia, Alicante, and Malaga.
The National Bank urges new incentives for landlords to increase rental supply and ease the pressure on struggling tenants.
