In locations such as Palma, Málaga, or Madrid, purchasing or renting requires allocating approximately 40% of one’s income.
Madrid/Santa Cruz de Tenerife, 30 January (Europa Press) –
According to a report published by Idealista, based on data from the final quarter of 2024, the proportion of household income needed to secure a rental property increased to 36% last year. In the Canary Islands, the effort to rent a property in the provinces of Santa Cruz de Tenerife and Las Palmas was recorded at 33% and 34%, respectively.
For purchasing a property, the national average rose to 23%, with efforts in the capitals of Santa Cruz de Tenerife (37%) and Las Palmas (27%) exceeding this level.
The real estate portal suggests that the limited availability of homes and the resultant rise in prices are the driving factors behind the increase in the effort required to buy or rent, surpassing “the thresholds advised by experts regarding rental costs.”
Francisco Iñarea, a spokesperson for Idealista, describes the current market situation as “concerning,” with a “clear” origin. While the national effort to purchase appears to be below critical levels, the reality reveals a trend of major markets exceeding the recommended one-third threshold of family income for purchases.
“It is crucial to implement all the necessary measures, both in the short and long term, that promote the enhancement of the housing stock, whether for sale or rent,” Iñarea added.
Rental Efforts
Twelve capitals have reported that the effort to rent a two-bedroom home surpasses the recommended limit of 30%. Barcelona has the highest proportion of household income devoted to this (49%), followed by Palma (45%), Málaga (42%), Madrid (41%), Valencia (41%), and Alicante (38%). This is also seen in Segovia (35%), Las Palmas de Gran Canaria (34%), San Sebastián (34%), Santa Cruz de Tenerife (33%), Bilbao (32%), and Gerona (31%).
Sevilla sits right at the recommended cap (30%). Below this threshold, we have Cádiz (28%), Granada (27%), Vitoria (27%), Pamplona (26%), and La Coruña (26%). Conversely, the least effort is required in Ciudad Real (16%), Teruel (19%), Palencia (19%), and in the cities of Jaén and Melilla (20% each).
Barcelona and Segovia are the two cities where the effort has risen the most, with an increase of five points. Following closely are Madrid (4 points), Málaga (4 points), Santa Cruz de Tenerife (4 points), Ceuta (3 points), Girona (3 points), Alicante (3 points), Zamora (3 points), and Ávila (3 points).
In three capitals, the rental effort has decreased compared to last year: Vitoria, Salamanca, and Tarragona, each showing a reduction of one point.
Purchasing Efforts
In most instances, the effort required to purchase is lower than for renting, with San Sebastián being the exception. Moreover, five capitals report effort rates exceeding the experts’ recommended limit of 30%: Palma (45%), Málaga (37%), Madrid (37%), San Sebastián (37%), and Barcelona (32%).
Alicante stands at 30%, while cities such as Valencia and Cádiz are at 27% each. Granada and Pamplona share a rate of 26%. The lowest purchasing effort is seen in Jaén (11%), Lleida (12%), Palencia (12%), Cuenca (13%), and Ciudad Real (13%).
In total, 26 capitals show a reduced effort compared to a year ago, with the largest drop recorded in Tarragona and Granada, both decreasing by 3 points. This is followed by declines in San Sebastián, Cuenca, Bilbao, Córdoba, Pontevedra, Logroño, Almería, and Melilla, each seeing a reduction of 2 points.
In Barcelona, the effort has diminished by one point. In contrast, Madrid has experienced an increase of six points, followed by Málaga and Teruel (both with an increase of 4 points).
