Spain's housing prices hold back young people's independence despite job market improvement

Since the years following the financial crisis, their incomes have regained some of the purchasing power they had lost. However, this has not translated into greater financial independence due to the difficulties in accessing housing.

This is evident from the report 'When Moving Forward Is Not Enough. Spanish youth facing the challenge of independence' by Comisiones Obreras to mark International Youth Day (12 August).

The report details how the proportion of young people living independently has been falling for years and the main obstacle is no longer simply finding a job.

The paradox is particularly evident among young people who are already in the labour market. Trends in youth employment have been positive compared with the situation a decade ago and the unemployment rate among those under 30 has fallen, standing at around 16 per cent.

At the same time, the labour reform passed in 2021 has reduced the proportion of temporary contracts. The proportion of temporary contracts, which stood at 56 per cent in 2018, was around 32 per cent during the first half of 2026.

However, at the same time, the cost of accessing housing, whether through ownership or renting, has become one of the main barriers for those trying to take that step.

The figures speak for themselves. Between 2016 and 2025, the proportion of young people living independently has fallen from 41 per cent to 31 per cent. This drop contrasts with the situation in other European countries, such as Germany, where the proportion of young people and young adults living independently remains higher.

This is also affecting older age groups. Among 30- to 34-year-olds (a stage of life when residential independence is traditionally established) the difficulty in accessing housing has likewise become a problem.

According to the trade union's study, the explanation lies in the relationship between income and the cost of housing. For a young worker on an average income, the problem is no longer simply that mortgage repayments are high, but rather raising the necessary deposit to buy a home.

The difficulty in building up these savings grows when a significant proportion of their salary has to be spent on rent while they are trying to save for a future home.

Renting should serve as an alternative for those who cannot buy, but in Spain the supply of public housing remains limited. "This leaves the rental market as the only option for many young people to become independent. Given the lack of a public stock of rental housing, the only option is to turn to the private rental market, where prices, too, have continued to rise," the report states.

At the same time, however, rents have risen particularly sharply for new tenancies and those already on long-standing tenancies may find themselves in a different situation to first-time tenants. The latter have to accept current market conditions and, in many cases, devote a significant proportion of their income to rent.

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