‘Having money is not enough’: Why a job no longer guarantees access to housing in Spain

Having money is not enough to secure housing in Spain

Poinews.com – Having money is not enough for many people with regular jobs who are trying to find decent housing in Spain. A salary that once offered stability may no longer cover high rents, support savings for a deposit or make a mortgage affordable.

The pressure is particularly intense for younger people and households on low or middle incomes, but it extends well beyond them. Higher property prices, rising rents and the struggle to build savings have made housing a major public concern.

House prices are rising faster than wages

Between 2015 and 2025, Spanish house prices increased by 84.6%, according to INE data. Over a similar period, average annual gross pay rose by 27.85%, reaching €29,540 in 2024. Collectively agreed wages increased by about 27%.

The gap persisted in 2026. In the second quarter, housing prices were 12.2% higher than a year earlier, while average wage growth cited by the Ministry of Labour was between 3% and 4%. For workers, housing costs are therefore increasing far more quickly than earnings.

Rafael Pampillón, professor of Applied Economics at San Pablo-CEU University in Madrid, describes this as a structural problem. He says that the distance between incomes and the cost of renting or buying means that even a deposit may not be enough to unlock access to a home.

“Having money for the deposit is not enough”.

Employment does not always protect people from poverty

Housing costs are changing what financial security means for people in work. An Oxfam Intermón study puts Spain’s in-work poverty rate at 15.49% as housing expenses strain household budgets, affecting around 770,000 people.

Market-rate tenants are especially exposed. One in three working renters, or 34.08%, falls below the poverty threshold after paying rent. The equivalent proportion is 10.22% for people repaying a mortgage and 7.95% for those who own their homes outright.

Alejandro García-Gil, Oxfam Intermón’s head of housing, employment and social policies, says evictions are only the most visible sign of the problem. Many workers stay in their homes but have too little income left for an acceptable standard of living after rent is paid.

“There is another, less visible reality: people who are working and just about manage to pay for their home every month, but who, once they have done so, do not have enough income left to sustain a decent standard of living.”

Rent can prevent workers from becoming buyers

Having money is not enough because rent can make it extremely difficult to save for a purchase. In some cases, a mortgage repayment may be lower than monthly rent, but prospective buyers still need substantial funds before a bank will lend.

Pampillón says a pay packet may cover recurring payments, while purchasing a property requires a large upfront sum. With the average home valued at about €200,000, buyers need roughly €60,000 for the deposit and the additional costs associated with the transaction.

The result can be a self-reinforcing cycle: tenants pay a large share of their earnings on rent, cannot build the necessary savings, and remain exposed to further rental increases. It can delay leaving the parental home, setting up an independent household or making long-term plans.

The Bank of Spain’s latest annual report found that four in 10 households living in rented homes face an excessive financial burden, spending more than 40% of their income on rent. Major cities and areas with strong tourism demand face additional pressure.

FAQ: Finding housing in Spain

Why is housing difficult to access even with a job? Income growth has not kept pace with rising home prices and rents. Workers may be able to meet monthly costs but still struggle to save enough for a deposit and purchase-related expenses.

Who faces the greatest housing pressure? Working renters are among the most affected groups, particularly younger adults and households with low or moderate incomes. The pressure is also more acute in major cities and tourism-heavy areas.

What should prospective buyers consider? Buyers need to account for more than the purchase price. A deposit and other transaction costs require substantial savings, so reviewing total upfront costs is as important as assessing whether monthly repayments are manageable.