Housing rental is one of the elements that make up the consumer price index, which pushes up or includes already widespread inflation. The factor that most destabilizes this indicator today is far from being overemphasized by energy products or the consequences of the invasion of Ukraine. By July, food in Galicia added ten times more increases than, for example, residential rental fees. But it is true that they have not stopped growing continuously since July 2015, as confirmed by the Galician Institute of Statistics (IGE). It’s a loss for more than 150,000 Galician households paying for a home they don’t have, and especially for young families or single-person units. Observatorio da Vivenda de Galicia, created by the Instituto Galego da Vivenda e Solo set a new record for rental prices: 463.3 euros per month. Paying these quotas for workers under 35 requires enormous effort, reaching up to half their income.
average salary this age group – 18 to 35 years old – around 11,600 euros per yearbelow the current minimum interprofessional salary (SMI) due to partial contracts or low pay. If we estimate this payment as a monthly distribution of fourteen payments, the result is clear: 830 euros to meet the average quota of 463 euros. As the Tax Office records confirm, even in the case of the youngest part—26 to 35 years old— rent payment consumes 40% of your personal income from work. The Bank of Spain itself, one of the institutions most advocating for a revenue deal to contain the rise in inflation, recommends that no more than 35% of income is spent on rent or mortgage payments, but other analysis organizations estimate that it would be optimal not to exceed 25%. It is an impossible goal for new entrants to the labor market or those who have been in it for nearly a decade.
In order to comply with this recommendation of the monetary agency, and considering the hypothetical freezing of rent payments, a salaried employee living as a tenant should have an income of around 1,350 euros, significantly above the SMI. Only in the last five years, referring to Xunta’s official statistics, The cost of renting in Galicia has been revalued by just over 20% on average. But over the same period, the range continues to widen as incomes for under-35s grew five percentage points less.
by city
Of course, the differences between the main Galician cities are marked by more than one problem in all of them: lack of supply, pressure from the holiday rental circuit, or insecurity of the owner. As confirmed by the regional administration, the cost in Vigo is already close to 550 euros per month. For example, compared to 2014, prices have increased by more than 1,500 euros per year; an amount to which a deposit, insurance or bank guarantee payment must be added. The cheapest city is A Coruña at 533 euros per month; Ferrol is the cheapest at around 380 Euros.
this Most of the contracts signed so far this year – the number of those officially registered and whose bonds were deposited in Vivenda was about 18,000– They ranged from 300 to 500 euros per month.. Quotas exceeding one thousand euros were the reference, but there are also (1,600).