SANTA CRUZ DE TENERIFE, May 10. (EUROPE PRESS) –
Housing has become more expensive in the last ten years in the Canary Islands by up to 27.3% (32.8% in the last five years), while in the same period wages have only risen by 6% (-1.6% in the last five years), according to the study ‘Relation of wages and the purchase of housing in 2022’, prepared by Fotocasa and Infojobs.
The community most affected by the decrease in wages in 2022 was precisely the Canary Islands, with 5.1%. Thus, workers from the Canary Islands have gone from receiving an average salary of 23,082 euros/year in 2021 to receiving 21,897 euros/year in 2022 (that is, 5.1% less). To this is added that in the Canary Islands the price of housing became more expensive by 10.9% compared to the previous year: it has gone from paying 1,782 euros/m2 in 2021 to paying 1,977 euros/m2 in 2022, 10.9% more .
The average Spaniard has to fully dedicate the gross salary of 6.7 years (81 months) to paying the mortgage on his home purchased in 2022, compared to the 6.2 years (75 months) he invested in 2021 and the 6, 4 years (77 months) that he needed in 2012.
In 2022 the price of housing for sale in Spain closed with an annual increase of 7.5% and placed the price in December at 2,051 euros/m2. This means that, taking into account the average gross salary registered by InfoJobs, which in 2022 was 24,395 euros (2,033 euros gross per month if we divide it into 12 payments), Spaniards have to dedicate 6.7 years of their full salary (81 months) to the payment of the mortgage of a house of 80 square meters.
If these data are analyzed by periods, it can be seen that ten years ago (2012) Spaniards spent 6.4 years of their salary (77 months) and earned 23,594 gross euros per year, while 5 years ago they spent 5.9 years of their salary (71 months) and earned 23,331 euros gross per year.
“The reason why we have experienced such a huge increase in prices in the last year is the impact of the change in monetary policy with the rise in interest rates. The price of second-hand housing remained stable during the first half of 2022 and it radically modified its itinerary after the tightening of access to mortgage loans.It is not usual for housing to show such rapid price increases in such short periods of time.However, over the years, the cost of housing has shown an upward trend since the economic recovery of 2014, coinciding with the resurgence of purchase demand and closely aligned with the increase in the price of life in general”, explains María Matos, Director of Studies and spokesperson for Fotocasa.
“During the last 10 years, the average salary in Spain has grown slowly after the economic recession of the 2008-2013 period, with a behavior similar to that of the rest of the European Union. However, we are far from the salaries of countries like Germany or France and Spanish workers have been the most affected by the loss of purchasing power, due to the differential of more than 5 points between average inflation and the average salary increase of the last year.With this in mind, it was necessary to raise the remuneration of the lower salary bands and we celebrate the recent agreement between employers and unions that recommends increases in salary agreements of at least 10% until 2025, starting with 4% for this same year”, says Mónica Pérez, director of Communication and Studies of InfoJobs.
DATA BY CCAA.
In the autonomous communities, if the last year is analyzed compared to the previous one, in 2022 the average salary fell in 7 of them, but the price of housing rose in all of them. Even home price increases have exceeded 10% in three communities, while wage increases have not exceeded 5% in any region of the country.
The community in which the price of housing for sale has become more expensive in the last year is Navarra, with 16.9%, and 18.3% since 2017. Thus, in the case of the last 5 years, Navarrese have gone from paying 1,589 euros/m2 in 2017 to paying 1,880 euros/m2 in 2022 for the square meter of a home for sale (that is, 18.3% more). Added to this is the fact that average salaries in Navarre have barely increased by 1.6% in the last year, and 9.8% in 5 years (they have gone from 22,831 euros/year in 2017 to 25,060 euros/year in 2022).
PROVINCES
By provinces, in 2022 the average salary decreased in 18 of the 50 provinces analyzed and, however, in 46 the price of housing increased.
The workers most affected by the decrease in wages in 2022 were those in the province of Las Palmas. Thus, they have gone from receiving an average salary of 23,082 euros/year in 2021 to receiving 21,726 euros/year in 2022 (that is, 5.9% less). To this is added that in the province of Las Palmas the price of housing became more expensive by 7.5% compared to the previous year, and it has gone from paying 1,704 euros/m2 in 2021 to paying 1,832 euros/m2 in 2022.
On the other hand, the province in which the price of housing for sale has become more expensive in the last year is Navarra (16.9% more than in 2021). Thus, the Navarrese have gone from paying 1,608 euros/m2 in 2021 to paying 1,880 euros in 2022 per square meter of a home for sale. Added to this is the fact that average salaries in Navarra barely increased by 1.6% in 2022 (they have gone from 24,676 euros/year in 2021 to 25,060 euros/year in 2022).
Zamora and Valladolid are the provinces that have benefited from the rise in average provincial wages and the drop in housing prices in the last year.
