It is also becoming increasingly difficult to get a home in Spain. Recent data from the Bank of Spain shows that it takes almost 8 years of gross annual salary to buy a home. In addition, more than 36% of the disposable annual gross income must be spent in the first year, the highest percentage since 2012. If rental is chosen, the sacrifice is even greater. According to data from the real estate website photo house and the job platform InfoJobs the percentage that has to be spent on rent has risen to 43% over the past ten years.
With this data, the salary pressure that residents of Spain have to experience to buy or rent a property is much higher than what the control authorities recommend. These authorities believe that no more than 30% of income should be spent on housing payments.
However, the data shows that by 2022, residents of Spain will spend an average of 43% of their gross salary on rent, the highest rate in the last decade. In some regions, this percentage is even above 50%, and even close to 60%, such as in the Balearic Islands (58% of the gross salary), Catalonia (58%), Madrid (57%), the Basque Country (52% ), Canary Islands (49%) and Cantabria (43%).
In 2022, the rental price of housing in Spain increased by 7.4% year-on-year, according to data from Fotocasa, and reached EUR 11.03/m² per month in December. The average gross annual salary that InfoJobs registered last year was 24,395 euros (2,033 euros gross per month in 12 instalments). House prices are rising faster than wages, and rents are currently at their highest level ever, with the largest increases in the past 17 years.
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Of Central Bank of Spain reported that in the fourth quarter of 2022, more than 7.8 years of gross salary were needed, which is almost equal to the previous quarter when the highest number since 2011, 7.9 years, was recorded. In addition, it was necessary to use 36% of the available annual income to make the first annual payments, the highest percentage since 2012.
However, these figures are below the highest level reached in the third quarter of 2007, before the real estate crisis. At the time, it took nearly 9.5 years of gross pay to purchase a standard home financed with a loan at 80% of its value.
2023-05-01 10:56:05
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