Spain’s Housing Affordability Crisis Deepens
Poinews.com – Spain’s real estate market has become more challenging for buyers, with a new study revealing that purchasing an 80-square-metre second-hand home now demands over eight years of full salary. According to Fotocasa and InfoJobs, this figure rose sharply in 2025, surpassing the previous year’s requirement of 7.1 years by 16 months’ worth of income.
The growing disparity between wages and property prices is driving this trend. While average salaries increased by 1% in 2025, home prices surged by 20.5%, hitting an average of 2,879 euros per square metre. This widening gap has left many citizens struggling to afford housing, as highlighted by María Matos, Fotocasa’s Head of Research, who stated:
“Spain is going through the worst housing affordability crisis in its history. Never before have citizens had to put so many years of pay towards buying a home.”
Regional Variations in Housing Affordability
Access to housing varies widely across regions. The Balearic Islands stand out as the most difficult area, requiring 15.1 years of full gross salary for an average home—equivalent to 181 months’ pay. Madrid follows closely, with a similar 15-year commitment. These regions also saw the steepest rise in home-buying efforts, with the required time increasing by 34 months in a single year.
Meanwhile, the Canary Islands and Basque Country exceed the ten-year mark, while Catalonia approaches it at 9.4 years. At the other end of the spectrum, Castilla-La Mancha and Extremadura remain relatively affordable, with buyers needing just four years of salary to purchase a home. Jaén, however, is the most budget-friendly province, requiring only three years of full pay for an 80-square-metre property.
Provincial Breakdown Reveals Disparities
Provincial data further underscores the divide. The Balearic Islands lead the rankings, followed by Madrid, Málaga, Guipuzcoa, Santa Cruz de Tenerife, and Barcelona. In contrast, provinces like Ciudad Real, Teruel, Toledo, Zamora, and Ávila also offer more accessible options, with home-buying efforts remaining below four years.
The study notes that only 17 Spanish provinces allow residents to purchase a home with less than five years of salary. Mónica Pérez, InfoJobs’ Director of Communications and Studies, warns that wage growth has not kept pace with the property market’s surge.
“The 1% increase recorded in 2025 falls far short of the rise in house prices,”
she explains. This imbalance is pushing individuals to allocate greater portions of their earnings and savings toward homeownership.
Overall, the report concludes that housing is becoming increasingly unattainable for many households, particularly in high-demand areas where the effort required to buy a home nearly doubles the national average.
