The cost of rent accounts for an average of 42.67% of a citizen’s salary in Spain in 2023, up 0.78 percentage points compared to the previous year, while the cost of paying a mortgage increased by half a point compared to the previous year has fallen 25.94% this year, according to data from the latest iAhorro Financial Effort Barometer.
The director of mortgages of iAhorro, Simone Colombelli, explained that the “slight decrease” in the effort that citizens put into paying mortgages is due to the “increase” in average household income and that the amount of loans requested has also fallen is, while when it comes to rents “prices are rising without them being able to get cheaper”.
As far as the average rental price and the average monthly mortgage payment are concerned, although there are large differences between the autonomous communities, the amount that Spaniards pay on average to rent an apartment in Spain is now 1,145.52 euros per month, 7 .4% more than a year ago.
The average monthly amount for a mortgage also increased, but to a lesser extent, namely by 3.41% to 696.27 euros.
The highest mortgage payments continue to be made in the Balearic Islands (1,257.18 euros) and in the Community of Madrid (1,039.26), the only autonomous regions with average monthly repayments above 1,000 euros.
As in 2022, the regions with the lowest repayment rates are Murcia (384.37 euros), La Rioja (417.27 euros) and Extremadura (418.95 euros).
Thus, the highest increase in the cost of mortgages was experienced in the Balearic Islands, with an increase of 19.23% from the average payment recorded last year, up to 1,257.18 euros. This is followed by mortgages in Asturias with an increase of 16.51% of the average payment to currently 521.47 euros.
In third place is Extremadura, which, although still among the regions with the lowest average repayments, has worked its way up from last place in the ranking with an average monthly repayment of 369.44 euros, an increase of 13.40% has.
The only decreases were in Aragon, where there was a decrease of 13.89% to the current 507.21 euros, in Murcia, where the average monthly rate fell by 5.47%, and in Navarre and the Canary Islands, where there was a decrease of no more than 1%: 0.9% less in the Navarre region, currently at 613.08 euros, and 0.67% less in the Canary Islands, at 532.75 euros.
As for rental prices, it can be noted that rents have increased in all autonomous communities compared to last year, which means that there is no community where it is more profitable to rent.
The highest average rental price is recorded in the Community of Madrid (average 1,513 euros), followed by Catalonia (1,425 euros), the Balearic Islands (1,315 euros) and the Basque Country (1,257 euros).
As far as increases are concerned, the Balearic Islands recorded the largest increase in the average rental price, with an increase of 16.59% to now 1,315 euros. This is followed by the Canary Islands with an increase of 12.66% to 995 euros in 2023, Catalonia and Madrid, both of which recorded an increase of almost 12% to 1,425 euros in Catalonia and 1,513 euros in Madrid.
The regions with the lowest prices include Extremadura (517 euros) and Castile-La Mancha (556 euros), which are also the regions where the increase was the smallest last year, at 3.99% and 4.27%, respectively .
Therefore, iAhorro has pointed out that “there is no region where it is more profitable to rent than to buy”, and only in the Balearic Islands is the financial effort that residents have to make when buying and renting similar , since the percentage there is over 40% in both cases.
The difference between rent and mortgage is smallest in Castile-La Mancha, Castile and León and Extremadura, where the difference between one expense and the other does not exceed five percentage points. In the other regions the differences are larger, with a gap of 21.45 percentage points between the cost of renting and purchasing. The discrepancy is greatest in Catalonia, where residents spend on average 47.30% of their salary on rent and 25.84% on mortgages. This is followed by the Canary Islands, where the difference is 20.13 percentage points.
For Colombelli, these differences between municipalities can be explained by the “great dichotomy” between areas with high housing needs, such as Madrid, Catalonia or the autonomous island regions, compared to other municipalities where “this problem does not exist”.
“In all cases, whether renting or buying, the only solution is to increase the supply of housing, which is neither automatic nor quick, but is fundamental,” he added.
Source: Agencies
2023-09-18 14:20:46
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