A WORKER in Madrid would need to save almost 59 years of net salary to buy a modest home in the Spanish capital, according to an alarming new report.
The study, published by the trade union UGT Madrid for International Workers’ Day, says a worker would need 58.89 years of typical earnings to buy a standard 60-square-metre home without financial assistance.
To do so, they would also have to stay within the spending limit recommended by the Organisation for Economic Co-operation and Development (OECD), an international group that studies the economy and living standards.
The OECD says housing costs should not be more than 40% of a person’s monthly net salary.
The average price of a 60-sqm home in the region is now €364,860, while the average annual net salary is €24,758, according to Europa Press.
In practice, this means that a person who wants to become independent in Madrid by buying a home needs almost 59 years of full salaries to afford it.
The report describes finding housing in Madrid as an ‘impossible mission’, noting that the average Spaniard works for 36 and a half years over their lifetime.
Furthermore, it says the problem is no longer only affecting low-paid workers, but also families with middle and even upper-middle incomes.
Mortgage payments are also causing serious problems. Average monthly payments are now €1,214.90, which can take up around two-thirds of a worker’s salary.
According to the report, salaries in many sectors would need to rise by around 120% for mortgage costs to fall to a more affordable level.
House prices in Madrid have also increased sharply over the past decade.
The price per square metre has risen by between 70% and 80%, reaching around €7,000 in some parts of the region.
Renting is also becoming harder.
Many workers now spend more than 60% of their salary on rent, while some lower-paid workers spend even more than their total monthly income.
UGT says this is forcing many people to share flats, stay with their parents for longer and delay starting an independent life.
The union has called on regional president Isabel Diaz Ayuso to increase public housing and place a ‘strict’ regulation on tourist apartments, including inspections and sanctions.
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