Spain has been grappling with a worsening housing crisis as prices soar, leaving residents forking out eye-watering costs just to keep a roof over their heads. Now, a recent study has revealed that tenants are spending nearly half of their income on rent.
A recent study by InfoJobs and Fotocasa found that renters allocate on average a staggering 47% of their gross income towards housing costs – the highest level recorded in the past five years. The data highlights a worrying growing gap between rent prices and salaries, particularly in major cities across the country. While average wages have risen modestly, up 3.1% in 2024 to reach an annual gross salary of just over €27,000 (£23,000), rental prices have soared by almost five times that rate.
Nationwide, rents have jumped 14% year-on-year, with the average price now standing at €13.29 (£11.31) per square metre (11 square foot). For a typical 861-square-foot flat, tenants are now paying upwards of €1,060 (£902).
“The accelerated rise in rental prices has far outstripped wage increases, forcing tenants to spend close to 50% of their income on housing,” said Maria Matos, Director of Research at Fotocasa.
“This is well above the 30% affordability benchmark recommended by financial regulators and portends worsening housing insecurity.”
In major Spanish cities, the situation is even worse. In the capital, Madrid, tenants are paying an eye-watering 71% of their income on rent.
Average rents of €20.62 (£17.55) per square metre has meant that a standard flat now costs around €1,650 (£1,404) a month. However, tenants are only being paid an average monthly salary of €2,340 (£1,991).
Barcelona follows closely behind, where renters must shell out 64% of their income.
The report reveals that 15 of the 17 autonomous communities have recorded double-digit increases in the share of income spent on rent. Only Cantabria (northern coast) remained stable, while the Balearic Islands saw a minor improvement.
Even as far south as the Canary Islands – off the coast of West Africa – has seen a sharp rise of 55%.
According to property portal Idealista, middle-income households – those earning the average wage – are now priced out of 68% of two-bedroom rental properties across Spain.
Monica Perez, Director of Communications at InfoJobs, said: “It’s not just young people struggling to find a foothold. Elevated inflation and sustained rent hikes have chipped away at household budgets across the board. What we’re seeing is a systemic affordability issue.”
Tens of thousands of Spaniards took to the streets in 40 cities earlier this month to demand a solution to overtourism and the country’s housing crisis. The protests in major cities and towns included Madrid, Barcelona, Malaga and Palma de Mallorca.
