The access of young people to housing is one of the great problems that the country has dragged on for years. High property prices contrast with the modest wages and unemployment of those under 30 years of age. In addition, the situation has worsened with the coronavirus pandemic and has caused that only 17% of young people have been emancipated from their home by the end of 2020. Of course, the situation for them is especially complex since the theoretical cost of renting a solitary house means having to allocate 91.6% of your salary.
The figure is well above the 30% recommended by experts to ensure financial sustainability. Faced with this situation, the majority of young Spaniards are forced to share a flat, an option that involves an outlay of 27.8% of their income . Regarding the purchase of a home, it is necessary to reserve 55.1% of the salary for the payment of the mortgage payment, according to the latest report of the Spain Youth Council. The average salary of young people with employment in Spain is 11,682.91 euros per year (973 euros per month).
“The purchase of a house is very restrictive for many young people due to the conditions of access to mortgage financing and the necessary prior savings to cover the initial outlay (generally 20% of the value of the property”, says the same report.
In total, more than half of the population between 16 and 29 years of age who resided in an independent dwelling (57.5%) opted for the rental formula at the end of 2020, despite the financial strain it entailed. The same report highlights that at the end of 2020, only 36.4% of young people were working , in a situation of strong incidence of contractual temporality that hindered the economic stability necessary to face the payments derived from housing.
The effective cost
Unlike the “cost of access” -which measures the proportion of the net income that should theoretically be used to rent or buy a free home-, the “effective cost” refers to the outlay that households actually make when they are occupying a home.
In the case of households with emancipated young people, the average effective cost in 2019 was higher when they lived in rent than when they did so in a home owned with a mortgage in progress, 29.4% and 24.3% on the set of net household income, respectively.