Rental prices have climbed sharply in recent months, driven by the surge in inflation across Spain. The trend has made owning a home feel increasingly affordable relative to renting, as mortgage costs become a smaller portion of disposable income for many households.
In a six‑month window, the rent paid each month rose by 7.78 percent, climbing from an average around 990 euros to about 1,067 euros. This means a growing share of income must be allocated to rent, pressuring households to stretch budgets further. A study from the mortgage comparison tool iAhorro calculated these figures using average net household income and regionally averaged rents. The result shows rent burden rising to 41.89 percent, up 3.18 points in six months and hovering at 38.71 percent in March.
The rent burden contrasts with the mortgage burden for the same period. The National Institute of Statistics provides the basis for mortgage calculations: an average repayment term of 24 years and an average fixed interest rate around 2.64 percent. Consequently, the mortgage payment burden edged up slightly to 26.45 percent, up from 26.37 percent in March, according to the same data source.
Supply and demand, the key drivers of rental prices
Regional variation is real, but there is no region where renting is more economical than buying. In rental markets, Madrid leads with an average rent around 1,351 euros, followed by Catalonia at about 1,273 euros, the Basque Country near 1,165 euros, and the islands also showing rents above the 1,000‑euro mark.
On the other end of the spectrum, some regions offer considerably cheaper rents. Extremadura stands out at roughly 497 euros, Castile–La Mancha near 533 euros, and Castile and León around 587 euros per month.
Why such differences? An iAhorro financial expert, Antonio Gallardo, highlights the presence of more balanced supply and demand dynamics outside major cities. In those areas, house prices tend to be lower, which helps stabilize rents and makes home ownership comparatively more attainable. This logic also explains why the average rent price can diverge so noticeably from the average mortgage cost in other parts of the country.
Is it better to own or rent in different regions?
Homebuying profitability varies by region. Mortgage payments remain highest in the Balearic Islands and Madrid, while Extremadura, Murcia, and La Rioja report the lowest monthly mortgage costs. In contrast, Catalonia and the Basque Country show a striking pattern: rents are high, yet mortgage payments are comparatively moderate. In Catalonia, the rent burden hovers around 43.66 percent, while mortgage payment burden sits at about 25.66 percent. In the Basque Country, rent burden is roughly 37.89 percent with mortgage burden around 24.85 percent.
The disparity between rent and mortgage burdens is most evident in the Canary Islands, where renting demands about 40.17 percent of income, significantly higher than the 24.39 percent paid on a mortgage. The Balearic Islands illustrate a notable shift over time: six months earlier, iAhorro noted that renting was more advantageous than buying in Pitiusas, with rent burden at 37.35 percent versus a mortgage burden of 42.75 percent. Since then, the rent burden has risen to 46.07 percent, while mortgage payments sit at 43.08 percent, only 0.34 points lower than March’s mortgage burden.
These patterns show how local market conditions shape the relative appeal of renting versus owning. In regions with high rents and relatively lower mortgage costs, the incentive to buy remains strong but can be offset by higher upfront costs and longer planning horizons. Conversely, areas with cheaper rents and higher mortgage pressures may tilt the balance toward renting for many households, at least in the near term.
Across the country, the broad takeaway is that regional supply and demand, coupled with price levels for both rents and mortgages, determine how households allocate their budgets. The ongoing inflation trend and regional housing markets will continue to influence whether renting or buying provides greater financial clarity for families and individuals alike, a conclusion supported by iAhorro analyses and official statistics cited in the period under review.