Rent has risen 50% in the last five years, but there are still cities where you can rent a flat for 400 euros a month.
The rental market in Spain is one of the incredible headaches for citizens due to its exorbitant prices and scarce supply that have turned the process of becoming emancipated into real agony. It comes with meeting the financial requirements, paying up to 4 months of deposit, or establishing a guarantee, but you also have to fight with other candidates to get the house.
According to a study by the real estate portal Fotocasa, which compares data from the last 5 years to June 2020, rental housing has become more than 50% more expensive since 2015 in Spain. So while Spaniards paid an average of 570 euros per month for the rent of an 80 square-meter home 5 years ago, now they spend an average of 866 euros per month. The motives? High demand by tenants and a low supply of rental housing.
A price increase has triggered the percentage of income destined for rent, far from the 30% recommended by experts and required by some real estate agencies. In Spain, it is estimated that on average citizens allocate 40% of their total income to pay rent, a percentage that has increased by six percentage points since 2018, while for young people up to 29 years of age, rental income accounts for 90% 7% of your salary.
With the confinement, some harbored the hope that prices would drop, however, they registered an increase of 8% in August. Many tourist rental homes have been converted into residential rentals and the available supply has increased, but the demand has also increased. With the job uncertainty caused by the pandemic, the option of renting has gained more followers than buying a home.
Despite everything, according to the data prepared by the Idealista housing offer and rental portal based on the methodology developed by the Ministry of Public Works in its rental price index, there are still cities where it is possible to rent a flat for less than 400 euros per month.
