Spain Rental Crisis: Average Tenant Spends Nearly Half of Salary on Rent

In Spain, the rental nightmare is real as the average tenant spends nearly half of their salary on rent. Discover the challenges faced by tenants in different provinces as they struggle to afford housing in an increasingly unaffordable market.

Renting in Spain is becoming increasingly unaffordable for many residents, with tenants now spending an average of 43% of their gross salary on rent in 2023. This marks the highest percentage in the last five years, highlighting the growing financial burden faced by renters across the country. However, regional disparities are significant, with some provinces seeing tenants allocate almost two-thirds of their income towards rent.

Barcelona stands out as the most expensive province, with tenants shelling out a staggering 65% of their salaries on rent. The Balearic Islands and Madrid follow closely behind, with tenants in these regions dedicating 63% and 62% of their earnings to rental payments, respectively. In Malaga, renters, including a significant expat population, are spending nearly half of their income (49%) on housing.

The cost of rental housing in Spain saw a 5.7% annual increase in 2023, reaching €11.66 per square meter per month. This surge in rental prices has put a strain on tenants, especially when compared to the average gross salary in Spain, which stood at €26,245 per year (€2,187 per month). The top ten most expensive provinces for renters include Guipúzcoa, Las Palmas, Vizcaya, Valencia, Santa Cruz de Tenerife, Malaga, and Gerona.

On the other hand, some provinces have lower rental costs relative to gross salaries, such as Ciudad Real, Jaén, Cáceres, Ourense, Albacete, and Badajoz. In Malaga, the average rent at the end of 2023 was €13.92 per square meter per month, with a gross salary of €27,418 per year (€2,285 per month). Despite these disparities, rental prices across the country are at historical highs, surpassing the 30% target set by rental control bodies.

InfoJobs, a leading job portal that published 2.5 million vacancies in 2023, has attributed the rise in rental costs to inflation, which has eroded the purchasing power of workers. This trend underscores the challenges faced by renters in Spain, as they struggle to balance housing costs with their living expenses.

The escalating cost of renting in Spain is putting a strain on tenants, particularly in regions where rental prices outpace income growth. As the housing market continues to evolve, policymakers and stakeholders must address the affordability crisis to ensure that all residents have access to safe and affordable housing options.