The fall of Spain’s youth: How households under-35 have seen their wealth plummet by almost three quarters since 2008

YOUNG households in Spain have seen their wealth collapse by 72% since the 2008 financial crisis, amid a backdrop of low pay and extortionate housing costs.

Figures from the Bank of Spain’s 2024 Household Financial Survey reveal an eye-watering decline in wealth, with the average net worth of under-35s dropping from €81,700 at the start of the crisis to just €22,900 in 2024.

There are two main factors that can explain this phenomenon.

Firstly. wages have barely grown.

In 2008, a typical young household earned €29,200 a year. Today, that figure is €32,000.

While this is a small increase, it has not kept up with inflation. 

Over the same period, the cost of living has gone up by almost 38%, meaning money does not go as far as it used to.

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The second big problem is housing.

Spain has always been known as a country where most people own their homes. But this is changing, especially for the young.

In 2008, around 66% of those under 35 owned a home. Now, only 36.7% do.

House prices and rental costs have risen so much that many young people cannot afford to buy. 

The average value of a primary residence for under-35s now stands at €168,000, slightly below the 2008 peak, but still far out of reach for many trying to save while paying high rents.

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On top of that, stricter lending rules and the need for deposits have made it even more difficult for young people to buy a house.

Those who do manage to buy a home tend to take on smaller mortgages, averaging around €90,000 on average. 

At the same time, fewer young households are now in serious debt, with only 4.1% now spending more than 40% of their income on debt repayments, compared to 24% in 2008. 

However, this improvement is mostly because many people are delaying buying a home, rather than a sign of financial stability.

There are also fewer young households in Spain overall – they now make up just 7.8% of all households. 

Interestingly, younger households are spending slightly less on food than they did before the crisis.

Annual spending on grub has dropped from €5,200 in 2008 to around €4,800 today, suggesting tighter budgets and changing priorities.

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