Housing pressure in Alicante rises for rental and ownership
Alicante has become one of the provinces where families must make notable efforts to access housing, whether renting or buying. The key issue is rising prices, especially for renters, combined with higher mortgage costs. With local incomes often below the national average, households in Alicante must dedicate a larger share of their earnings to housing than many other parts of the country.
These observations come from the latest study published by the Idealista portal, which highlights a clear year-over-year increase in this indicator. When renting, a growing share of income is required each month, rising from 30.5% to 32.6% at the national level. For purchases, the monthly commitment to reserve funds has climbed to 21.9% compared with the prior year, while salaries rose by 18%.
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Inside Alicante, the situation is even more challenging. The portal’s calculations show that in 2022 families in the province were already paying 31% of their net monthly income for a rental apartment, just above the 30% threshold experts see as sustainable for household finances. Since then, the rate has climbed to 35%. Alongside more than a 15% price increase in this period, the average monthly cost for an 80‑meter apartment sits at 792 euros, and for a 100‑meter unit it nears a thousand euros.
Consequently, Alicante ranks fourth among the regions where renting demands the most effort, just after Malaga, where families allocate 53% of income; the Balearic Islands with 48%; Barcelona with 41%; and Las Palmas with 37%.
The level of effort in the Madrid market remains lower at 34%, since higher prices are offset by higher salaries than those in Alicante.
In ownership: mortgage burden grows
For those who choose to own their home, the burden has grown even more than rents. A year ago, the average mortgage accounted for about 21% of household income. Today that share has risen by seven percentage points to 28%. These numbers place Alicante among the provinces where the path to homeownership is the most demanding. Specifically, after the Balearic Islands, where incomes are up to 45% of what families earn; Malaga at 43%; and Santa Cruz de Tenerife at 35%.
These figures underscore the persistent challenge for buyers in Alicante, especially when compared with national trends. The combination of price increases and relatively modest wage growth continues to tighten the affordability gap for both renters and potential homeowners in the region.
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Industry observers note that the rental market remains tight and slow to loosen. Idealista’s spokesperson on future expectations, Francisco Inareta, points out that there are no clear signs of relief for those seeking to rent. If legislation tightens further together with income restrictions and other measures, the supply shortage could worsen and increase the difficulties families face in accessing rental housing, with particular impact on more vulnerable profiles.
On the other hand, for buyers there is a glimmer of potential relief if monetary policy actions translate into cheaper financing. A cut in ECB interest rates later this year could lower borrowing costs slightly, provided demand does not surge and push prices back up, according to Inareta.