Escalating Rental Costs Force Spanish Residents to Devote Half of Income to Housing

The severity of Spain’s housing crisis is increasingly evident. According to the CIS, rents have surged by approximately 30% since 2022. Simultaneously, PwC data indicates that new housing construction has remained at historic lows since 2010, averaging only 83,000 units annually, a stark contrast to the 315,000 units per year seen between 1970 and 2010. Furthermore, the Bank of Spain notes that the stock of public housing is significantly insufficient, accounting for only 1.5% to 3.3% of total housing, well below the EU average of 9.3%.

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Concerns are now being raised from within the real estate sector itself. The industry has faced ongoing criticism from groups like the Tenants’ Union for its perceived lack of decisive action against vulture funds and the eviction of vulnerable populations. Property portal Fotocasa estimates that, in 2025, Spanish renters spent an average of 50% of their salary on housing costs.

While these specific figures—derived from average salaries listed in InfoJobs advertisements—may not provide a perfectly realistic snapshot, they exceed those found in other studies. The Funcas think tank suggests that young people are among the most affected demographics, dedicating roughly 35% of their budget to rent. This remains two percentage points above the threshold typically recommended by economists, which suggests housing costs should not exceed one-third of total income.

Fotocasa’s analysis shows that the average portion of salary dedicated to rent has climbed from 38% in 2019 to 50% in 2025. There are also significant regional disparities across Spain’s autonomous communities: while residents in Extremadura allocate 29% of their income to rent, those in the Madrid region face a staggering 71%. Similar high costs are observed in the Basque Country, the Canary and Balearic Islands, Catalonia, and the Valencian Community.

Conversely, the provinces where residents allocate the smallest share of their gross pay to housing include Jaén (23%), Teruel (25%), Caceres (27%), Ciudad Real (28%), Albacete (29%), and Ourense (29%).

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