Costa News Spain Breaking News | English News in Spain.
The housing crisis in SPAIN is affecting renters most. New figures show that three of four rental households are unable to afford the upfront costs for buying a home.
According to a new report by the Bank of Spain, renters – especially young people and foreigners – are increasingly priced out of the housing market.
Many face what the report calls ‘financial overexertion’, as soaring prices outpace wages.
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The study shows that the average price of property in Spain has risen by nearly 40% in the last decade. Rents, however, have risen more than 10% per year since 2022.
Many people are forced to rent, and it is getting more expensive.
The Bank warns of a significant shift in demand for housing due to high prices and limited access mortgages. This is especially true in cities like Madrid or Barcelona.
It is particularly bleak for the young.
While their wages are growing slightly faster than older workers’, they have not been able to keep up with the costs of renting or buying a home.
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Between 2015 and 20, the housing price rose by more than 20% while wages for people under 34 increased only 11%.
The housing crisis is also fueling the crisis.
Spain will face a housing shortage of up to 450 000 homes between 2022 and 2024. Half of these are required in urban and coastal areas such as Madrid, Barcelona Valencia, Alicante and Malaga.
The National Bank is encouraging landlords with new incentives to increase their rental inventory and relieve pressure on tenants.
