Access to housing remains increasingly challenging for many citizens. The index measures the balance between average house prices and the typical income of working people, along with the debt capacity needed to buy a home, and it dropped again in 2023. The indicator has trended downward since the third quarter of 2021 and sits at its lowest levels in over ten years, holding at 71 points after the real estate downturn.
It declined by 16 points, leaving a balance of 100 points down to 73 points, according to the latest report from the Appraisal Association. This drop signals that rising housing prices and higher interest rates have tightened access to housing. The association notes that the new measures were not widely adopted or effective enough to reverse the trend.
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The regions reporting the greatest difficulty in obtaining housing are the Balearic Islands, Madrid, Catalonia, and the Basque Country. Only in the Region of Murcia, Castilla-La Mancha, La Rioja, Aragon, and Asturias can a citizen earning the average salary purchase an average home without borrowing beyond what is reasonable.
All regions show notable year-over-year declines, though quarterly changes reveal variations: six of the 17 autonomous communities kept the same access index; these are Asturias, the Canary Islands, Castile and León, Catalonia, Madrid, and Murcia. Two regions, Cantabria and the Basque Country, saw improved access, while the remaining seven continue to struggle, according to the Valuation Community.
Nationally, the appraiser’s index shows housing accessibility down about 20.7% since peaking in 2013, after the 2017 high. The Balearic Islands posted the largest drop, down around 41%, followed by the Valencian Community, Catalonia, and Madrid with declines of about 28.7%, 25%, and 24.4% respectively. The Basque Country and Cantabria are the only regions that did not experience this downward trend, suggesting it is easier to buy a home there today than in 2013.
5% increase in 2023
New housing prices in 2023 rose by 5.1% over the last twelve months, averaging 2,871 euros per square meter nationally. This means a typical 80-square-meter home now costs close to 230,000 euros, up from under 220,000 euros, according to the valuation firm’s research.
Across the past year, every autonomous community recorded year-on-year price gains, ranging from 2.5% in Castile-La Mancha to 6.8% in the Balearic Islands. Madrid saw the second-highest annual increase at 6.3%, while Castilla-La Mancha and Extremadura posted gains below 3%.
By city, Barcelona remains the highest-priced capital with the national average, followed by Madrid at 4,385 euros per square meter and San Sebastián at 4,283 euros per square meter. City prices above 5,150 euros per square meter are noted. On the lower end, Ciudad Real (1,301 €/m2), Cáceres (1,311 €/m2), and Badajoz (1,322 €/m2) are among the most affordable, according to the Valuation Association.