Increases in house prices and improvements in salaries have not gone hand in hand in the past five years. An example of this is represented in the province of Alicante. Square meters became 12.5% more expensive during this period, while salaries increased by only 6.9%.This has exacerbated the problems of the youngest, in particular, in obtaining a home to live in.
The study “Relationship between salaries and home buying in 2021”, based on data on average prices of second-hand homes for sale in the Fotocasa real estate index and average wages received from job offers on the Infojobs platform, comes to highlight important differences. between the two sections. In general, taking the 2016-2021 period as a reference, it was concluded that while salaries increased by 5.9% on average, the house price grew by 15.6%. In the case of the province of Alicante, the difference is slightly less, but still a major obstacle.
The problem has gotten worse over the past year. Wages in Spain fell 2.5% after four consecutive years of increases, the real estate market maintained its bullish streak, posting a new 1.7% increase. In the province of Alicante, wages fell 2.8% to an annual average of 23,020 euros, compared to a 2.1% increase in house prices, which left them at 1,559 euros per square metre.
with everything, Workers from Santa Cruz de Tenerife were hardest hit by the drop in wages in 2021.. Thus, Tenerife residents earned an average salary of 25,639 euros in 2020, moving to 23,082 euros in 2021, which is 10% less. In addition, house prices in Santa Cruz de Tenerife increased by 5.2% compared to the previous year and increased from 1,756 Euros per square meter in 2020 to 1,848 Euros in 2021.
Latter, The province where the prices of houses for sale increased the most in the last year was Malaga. with 9%. Thus, the people of Malaga went from paying 2,265 euros per square meter in 2020 to 2,468 euros in 2021. Add to this that average salaries in Málaga fell by 3.9% in 2021 from €24,456 to €23,496 in 2020. in 2021.
Cuenca, Guadalajara, Asturias and Palencia were the provinces that benefited from the increase in the average provincial salary and the decrease in house prices last year.
“This report clearly shows us what the big problem with access to housing that exists in Spain is: wages and property prices have not increased at the same rate. This imbalance has caused citizens to make more efforts to face the purchase of a house. Also, in runaway inflation contextIf they lose their purchasing power due to the rise in the CPI, the difference could be even greater, raising the price of real estate and lowering the disposable income of households,” explains María Matos, Director and Spokesperson for Fotocasa Research.
Mónica Pérez, Director of Studies at Infojobs, said: “The gradual evolution of the average salary in Spain between 2017 and 2020 has been slowed by the effects of the pandemic on the economy and the operations of companies. Covid has destroyed many jobs and exacerbated inequalities, especially in low-wage sectors in 2020. We are currently going through a period of salary moderation, although it is necessary for companies to cope with the difficult economic situation caused by the energy crisis and lack of supply. serious impact on the purchasing power of workers in the face of rising inflation”.