Earning more is not enough: house prices in Spain rise faster than wages
Annual pay differs by about €10,000 between Spanish regions, but a 90 m² home can cost up to €383,000 more. In the Balearic Islands and Madrid, buyers need over €129,000 saved for a deposit.
In Spain, a high salary does not guarantee the ability to purchase a home. According to iAhorro's analysis, there are significant price discrepancies between regions. While annual salaries differ by around 10,000 euros across the country, the cost of a 90-square-metre property can vary by nearly 383,000 euros. The most challenging aspect is the savings required for a mortgage.
To buy such a home, buyers typically need to deposit about 30% of the price, including additional costs. In the Balearic Islands, this amounts to around 144,000 euros, while in Extremadura and Castile-La Mancha, the required deposit is about 29,000 and 30,000 euros, respectively.
The price of a 90-square-metre property is higher in the Balearic Islands and Madrid, at around 480,000 and 431,000 euros, compared to 97,000 and 100,000 euros in Extremadura and Castile-La Mancha, respectively. Despite higher salaries, these price differences mean that earning more money does not necessarily make homeownership easier.
Savings also play a crucial role. If a family saves 35% of its income, it can accumulate the necessary deposit in less than five years in nine Spanish regions. These include Galicia, Navarra, Aragón, La Rioja, Murcia, Asturias, Castile and León, Extremadura, and Castile-La Mancha. However, in the Balearic Islands, Madrid, and the Canary Islands, five years of saving would not suffice to afford a 90-square-metre home.
For individuals buying a home on their own, the financial challenge is even greater. They would require 14.2 years of saving to accumulate enough money for a home in the Balearic Islands, 10.7 years in Madrid, and 10.1 years in the Canary Islands. Laura Martínez, Head of Communications at iAhorro, highlighted that the primary issue is not just paying the mortgage, but more importantly, amassing the initial savings required.
She emphasized that the hardest part is managing to save. Young people and buyers living alone face the greatest difficulty in overcoming this initial barrier.
Written by urgent.news from Euronews Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
