Renting versus buying: which option is more affordable across regions
Even with elevated borrowing costs, renting a home does not outperform buying when the total cost is considered. The latest insights from the iAhorro portal show that in the Valencian Community, the typical rent consumes 30.46% of income, while mortgage payments account for 20.56%. A tight rental market continues to push rents upward, widening the gap between renting and owning in many areas.
Nationwide, Spaniards allocate about 42.67% of their salary to rent (roughly €1,150 per month) versus 25.94% for mortgage payments (around €700). Year over year, rent commitments have risen by 0.78 percentage points, while mortgage costs have edged down by about half a point. In the Valencian Community, the gap remains more nuanced: the average rent sits at €737, while mortgage payments fall to €497, indicating that the relative burden of renting is still noticeable but not universal.
Simone Colombelli, mortgage director at iAhorro, explains that the share of income directed toward home loans has eased slightly. This shift is linked to higher household incomes and a reduced amount of credit being requested. By contrast, rents continue to climb due to limited supply, with cheaper options scarce unless a smaller home is chosen or the location is farther from central areas.
When the data are broken down by autonomous region, no area shows renting as more affordable than buying. On average, rent consumes 48.68% of income in rentals and 46.56% in mortgage payments. Only in the Balearic Islands do the regional figures align more closely, showing a similar level of financial effort for both options.
Across the rest of the country, the disparity is often pronounced. In Catalonia, households spend an average of 47.30% of their income on rent compared with 25.84% on mortgages, a 21.46 percentage point difference. The Canary Islands follow with a 20.13 point gap (43.32% rent, 23.19% mortgage). Madrid shows a 14.27 point gap (31.29% rent, 45.56% mortgage), Andalusia a 13.78 point gap (40.33% rent, 26.55% mortgage), and the Basque Country a 13.13 point gap (38.97% rent, 25.84% mortgage).
In the Valencian Community, the differential is 9.9 points. Castilla-La Mancha remains ahead of regions like Castilla y León and Extremadura, where the gap is under five percentage points. These differences highlight how regional dynamics shape the affordability of renting versus buying for households across the country.
Simone Colombelli notes that the most effective lever to reduce prices in both rental and purchase markets is to increase housing supply. He adds that rising supply is not a quick fix, but it is essential for stabilizing costs over time.