Funcas warns that lack of rental housing is slowing young people’s emancipation

According to this analysis by the former savings banks trust, “the percentage of young people living with their parents, especially Age group 25 to 34 years old: More than 46% lived with their parents last year, almost ten points more than ten years ago“. The high volume of latent demands of young people who cannot emancipate themselves, increase in prices The research states that the main obstacle is lack of supply.

RaymondTorresThe author of the article recalls that after the puncture: housing bubblehousing construction increased slower than demand. Since 2015, an average of 75,000 new homes have been built each year; In contrast, approximately 120,000 new homes are built every year. in the same period. Additionally, the offer is concentrated in the following segment: the living space in decency, a prejudice that particularly affects young people who tend to be among these groups low wages.

A data-driven analysis Eurostat The main deficiency in Spain is that there is an ample stock of rental housing available at affordable prices, which is the preferred path to emancipation of young Europeans. In the early 2000s, almost six out of every 10 young people lived in their own home, while one in four young people lived on rent. Right now, Only 30% of young people living in property due to collapse in supply and changes in financing terms since the burst of the real estate bubble. The situation is getting worse with recent increases in interest rates. official price of money 4.50%The highest level since May 2001.

Almost two in three people aged 25-34 who live with their parents have a jobThis rate is slightly below the European average. Therefore, the fact of finding employment does not seem to be the main determinant; but the salary increase will of course help cover the cost of housing. Lack of supply is reflected in the high cost of rentsIt has recorded an uninterrupted upward trend in recent years.

For example, Between 2015 and 2022, the average rental price in Madrid increased by 39%, compared to an average of 26% in other European capitals.. As a result, the average rental price in Madrid today exceeds the prices of other major cities such as Berlin, Brussels or Rome. As a result, according to Funcas, four in ten renters now spend more than 40% of their disposable income paying rent; This is almost twice the European average.

correlation

The analysis reveals the relationship between the density of the rental property stock and the percentage of young people who are emancipated. In Northern and Central European countries, Because there is a relatively abundant rental market, the majority of young people have access to housing. On the contrary, When the rental pool shrinks, as in Spain and other Southern European countries, young people have more difficulty freeing themselves..

According to Funcas, one solution is to increase supply, especially rentals. In this sense, the article reviews some international initiatives that target this segment and are being implemented in our country. Incentives that give young people greater access and choice. These initiatives are based on the need to act quickly and in the face of budget constraints. simply by increasing supply through public spending or by granting subsidies and guarantees aimed at encouraging home ownership.

These international experiences show that, in the case of Spain, a housing policy approach that strengthens the rental segment can be very helpful in facilitating the emancipation of young people, without creating a significant impact on public accounts and more efficiently than other aid. Indicates the author of the article.