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Malaga province's property market is crossing all the red lines. Indicators measuring the difficulties of access to housing offer increasingly worrying reading. The latest of these measurements reports that Malaga is the province in Spain with the highest proportion of income required for its inhabitants to cover the rent. According to figures published by Idealista, in order to pay the rent for a typical two-bedroom home, 54% of the net family income - a figure similar to that of twelve months ago - must go to that. In other words, more than half of the household's net income pays the rent alone. Financial experts and international economic organisations recommend that spending on housing (mortgage or rent) should not take up more than 30% of household income. But in Spain as a whole, monthly rents are also above 30% on average, currently at 36%. Nevertheless, that is still 18 points below the figure for Malaga.
The effort required to pay rent in the province of Malaga exceeds, albeit only slightly, that of the Balearic Islands (53% of income), as well as that of Barcelona (43%) and Valencia (40%). Along with these provinces, the other provinces where rent payments exceed 30% of income are Santa Cruz de Tenerife, Alicante, Las Palmas, Madrid and Guipúzcoa.
42% of income for renting in Malaga city
The effort is lower in the capital than in the province as a whole (54%) because household incomes in Malaga city might be higher than in other municipalities or because in some municipalities, such as Marbella, property rentals are higher.
But if in the whole of Malaga province more than half of your income has to be set aside for rent, in Malaga city the picture changes significantly, because the proportion of household income needed to pay rent there has fallen to 42%. One year ago it was at 36%, possibly because family incomes in Malaga city are somewhat higher or because rental prices in some municipalities, such as Marbella, are higher.
Be that as it may, the Malaga province city also drops in the ranking with respect to the province as a whole, because it is no longer the first, but is surpassed by Barcelona, where the monthly rent takes 45% of the income, and Palma (45%). Along with these cities, the effort rate is also above 30% in Valencia, Madrid, Alicante, Donostia, Las Palmas de Gran Canaria, Santa Cruz de Tenerife, Bilbao and Segovia.
So what about access to housing in terms of purchasing your home? Malaga province is second in the country where paying the mortgage on average represents the greatest effort - 42% of the family income to be precise (a year ago it was 40%), a figure that is only behind that of the Balearic Islands (44%). In addition to these two provinces, in only one other province does the monthly mortgage payment account for more than 30% of net household income: Santa Cruz de Tenerife (36%). The average effort rate in Spain is 23%.
Again, as with renting, buying a property in Malaga city requires a smaller proportion of your household income than in the province as a whole. In the city of Malaga, mortgages account for 38% of net household income - a drop of eight points compared to last year's figures. This figure places Malaga in third place behind Palma (44%) and San Sebastian (39%). Mortgages also account for more than 30% of the money available in the homes of the people of Madrid (34%) and Barcelona (31%).
In general, the figures for access to housing have gone downhill throughout Spain and, if we are talking about Malaga province, especially in the capital, because the figures for the province as a whole were already worryingly high a year ago, with rental effort above 50% and purchase effort around 40%. According to Francisco Iñareta, spokesman for Idealista, this worsening is due to "the persistent lack of available supply both for sale and for rent." He added: "The markets continue to tighten more and more, pressured by a growing demand that finds less and less housing, which increases prices and leads to an increase in the family's efforts to meet that need.". With particular regard to the property purchase market, the Idealista expert has this to say: "the lack of supply is shown in all its harshness by the paralysis for decades in the construction of new homes in the most sought-after areas, the impact of which is now being felt.". He concluded: "Unfortunately, the construction of new homes is taking years, so it is unlikely that in the short or medium term there will be large pockets of new homes that can ease the tension in the markets and bring prices down."
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