Rising rental costs in Spain push tenants to the brink

New research highlights a troubling trend in Spain's rental market, revealing that residents now allocate an alarming 47 percent of their monthly income to rent, with some regions witnessing figures as high as 70 percent. This situation underscores the growing housing crisis affecting countless individuals across the nation.

A recent report has brought to light the stark reality facing renters in Spain, where almost half of their gross income is consumed by housing costs. The surge in rental prices has been a focal point of public discontent, leading to a series of protests demanding affordable housing throughout the country. These demonstrations, intensified by the rise of short-term tourist accommodations in major urban areas, culminated in a nationwide event that took place in April, involving 40 cities.

According to Spanish radio network Cadena Ser, the year 2024 saw average rents increase fivefold compared to the rising wages in the country. The report titled “Relationship between salaries and rental housing in 2024,” published by property website Fotocasa, reveals that renters are now spending 47 percent of their salaries on housing—up 4 percent from 2023 and 9 percent from 2019. This calculation is based on data from the InfoJobs platform regarding average salaries and Fotocasa's property index for rental prices.

The report further indicates that rents have surged by a staggering 14 percent year-on-year, reaching an average price of €13.29 per square meter in December 2024. Given the average gross salary in Spain of €27,060 (approximately €2,255 monthly), tenants must now allocate nearly half their income to afford an 80 square meter home.

The proportion of income spent on housing has escalated from 38 percent in 2019 to 47 percent today, greatly surpassing financial guidelines that recommend housing costs should not exceed 30 percent of a household's income. María Matos, a spokesperson for Fotocasa, emphasizes the severity of this situation. She notes, “A figure well above the 30 percent recommended by official bodies is alarming. Furthermore, the 4 percentage point increase in just one year signifies a drastic change in the rental landscape, exacerbating housing inaccessibility and potentially leading to long-term housing insecurity.”

While this crisis permeates most of Spain, it is particularly pronounced in regions such as Madrid, where tenants are now forced to dedicate a staggering 71 percent of their gross salary to rent. In Catalonia, the figure stands at 64 percent, while the Balearic Islands face similar challenges, with over 60 percent of income consumed by housing costs, despite a slight decrease over the past year.

Analyzing Fotocasa's data reveals that the ten provinces where residents spend the highest percentage of their salaries on rent for an 80 square meter home include Barcelona and Madrid at 71 percent each, followed by Guipúzcoa (59 percent), Vizcaya (56 percent), Girona (55 percent), Valencia (53 percent), Málaga (49 percent), Seville (45 percent), and Alicante (43 percent).

Alarmingly, 70 percent of provinces across Spain report that tenants are spending more than the recommended 30 percent of their income on rent. Conversely, in provinces such as Zamora, León, Badajoz, Ávila, Córdoba, Albacete, Cáceres, Teruel, Ourense, Ciudad Real, Jaén, Guadalajara, and Castellón, renters manage to keep their housing costs at or below 30 percent.

This escalating rental crisis necessitates urgent attention from policymakers, as the dream of affordable housing slips further from reach for many Spaniards.