The logical option that many Spaniards have to discard to live once they have been expelled from buying and selling market due to high prices and low wages, the rentis becoming a true chimera also for these pockets due to the increasingly disparate evolution of rents and salaries.
In 2022, the price per square meter of a rental home became more expensive by 7.4% and wages fell by 0.7%, according to the study “Relation of wages and housing rent” based on median rental home prices for the Real Estate Index Fotocasa and the data of the average salaries of the job offers of the InfoJobs platform. If you look back and look at the evolution of wages and the price of rental housing since 2012, what you see is that rents are becoming increasingly inaccessible. In ten years, the gap between one and the other has widened to the point of 48 percentage points. While salaries have barely increased by 3.4% (4.6% in the last 5 years), the price of rental housing has risen by 51.4% (35.3% in the last 5 years). In other words, rents have risen 15 times more than salaries.
“The price of rent has been increasing at a frenetic pace in the last decade. After the recovery from the economic crisis in 2014, rental housing was promoted as the main housing option for citizens, which caused demand to increase in the face of a very low supply. We are currently facing the highest rental prices in history, caused by a very sharp reduction in the volume of rental housing which has resulted in the situation of minimum stocks”, explains María Matos, director of Studies and spokesperson for Fotocasa. “While the cost of rent grows, salaries do not do so at the same rate, which forces citizens to carry out a 43% salary effort to pay your rent. A situation that increasingly complicates access to housing,” adds Matos.
If rents go up like a rocket, wages go up like a turtle. “During the last ten years, the average salary in Spain has grown slowly after the economic recession of the period 2008-2013, with a behavior similar to that of the rest of the European Union. However, we are far from the salaries of countries like Germany or France and Spanish workers have been the most affected by the loss of purchasing power”, explains Mónica Pérez, Director of Communication and Studies at Infojobs.
By autonomous community, in 2022 the average salary fell in seven of them, but the price of rental housing rose in all of them. Even in five communities the rise in housing prices has exceeded 10%, while wage increases have not exceeded 5% in any region of the country.
The community most affected by the decrease in wages was Canary Islandswhere its workers went from an average salary of 23,082 euros/year in 2021 to 21,897 euros/year in 2022. To this is added that in the Canary Islands the price of rental housing became more expensive by 16.9% compared to the previous year: it went from paying 9.63 euros/m2 per month in 2021 to paying 11.26 euros/m2 per month in 2022.
The community in which the price of rental housing became more expensive is baleares. In the last ten years, the Balearic Islands have gone from paying 7.16 euros/m2 to 14.16 euros, 97.9% more. Added to this is the fact that average salaries in the Balearic Islands have fallen by 1.2% in the last year, but have increased by 7% in the last 5 and 10 years (they have gone from 21,760 euros/year in 2012 to 23,292 euros/year in 2022).
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