“The analysis presented indicates insufficient growth in the supply of rental housing residential for absorb the sustained increase in demand“. The latest report from the Bank of Spain on the residential rental market in Spain has clearly shown that the issue of rents is a serious problem and that it is suffocating the Spanish population.
Data provided by the entity indicated that during the year 2024 the supply of rental residences increased, but not enough to balance the increase in demand. “This relative rigidity of the rental housing supply would have led to a growth in rental prices which, on average, would be greater than the increase in income of renting households“, said the Bank of Spain in its latest study.
Prices that do not increase at the same time as wages. As the institution indicates, the growth in income of these households would be conditioned by their employment situation and would be “limited by the low productivity dynamism of the economy.”
This means that the Bank of Spain does not exclude the possibility that the Executive regulates in one way or another the housing crisis in Spain: “A high effort associated with the rental of housing can generate economic effects and negative social issues. justify public intervention. In particular, these significant efforts hinder the emancipation of young people and their ability to accumulate human capital, reduce the geographic mobility of workers and give rise to situations of overwork and restricted consumption as well as poverty and exclusion. social welfare of households with the lowest incomes. “.
Around 40% of Spaniards are overworked
When it comes to the percentage of salary allocated to rent, Spain ranks at the bottom of major European economies. The percentage of households that They spend more than 40% of their gross disposable income housing expenses in our country are around 40%, a bloody figure if we compare it to the European Union average, which is around 23.5%, or to countries like France (17.5%), Germany (28%) or Italy. (27%).
“Data for the 2015-2023 period average indicate that 23.5% of rental housing on the market in the EU-27 find themselves in this situation, even if there is significant heterogeneity between countries. For example, among the major European economies, Spain stands out for having the highest proportion of overworked renter households, close to 40%, compared to proportions around 17.5% in France and Germany, 28% in Italy and 27. % on average in economies. of the EU-27,” says the Bank of Spain report.
Situations of overwork on the housing rental market are concentrated in the lowest income groups and situations of social vulnerability appear, in particular among tenants at risk of poverty or exclusion. The seriousness of the matter is such that Spain leads Europe Regarding peopletenants at risk of poverty or social exclusion on average for the period 2015-2023.
Thus, over the period 2015-2023, approximately 45% of the population who resided in market-rate rental housing was in risk of poverty or social exclusion. For this reason, the Bank of Spain stated that this situation could “contribute to the progressive delay in the age of emancipation of the youngest cohorts, which are those with the lowest income and saving capacity for access housing”.
