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An aspiring homeowner needs, on average, to spend 7.6 years of their full salary to buy a house in Spain, new data shows.
According to the Índice de Esfuerzo Inmobiliario (Real Estate Effort Index) for the first quarter of this year, the figure is very similar to that of the last quarter of 2023 and 1.3% lower than that of the first quarter of last year.
However, it varies among different Spanish regions, such as the five years of full salary someone in Murcia has to spend on buying a home compared to the 9.3 years in Madrid. In the Balearic Islands, people have to spend 19.9 years of their salary to buy a home, according to the data. In Catalonia, 8.6 years of full salary is needed; 7.5 in Galicia; 7.4 years in the Basque Country; 7.3 in Andalucía; 7.1 in the Canary Islands; 6.6 in Navarre and Valencia; 6.5 in Cantabria; 5.8 in Extremadura; 5.7 in Castilla y León; 5.6 in Asturias and La Rioja; 5.5 in Aragon; and 5.3 in Castilla-La Mancha.
The index is created from the ratio of the market value of new and used housing to average gross annual income.
As for the Índice de Accesibilidad (Affordability Index), which determines the balance between the average price of housing and the appropriate debt capacity for the acquisition of the same, taking into account the average income of employed citizens, during the first quarter of 2024 it has broken its downward trend that began in the third quarter of 2021.
With 100 being the break-even point, ten regions do not reach this barrier; in other words, a citizen of these regions with an average salary would not be able to buy an average home without going into debt beyond what is reasonable, while the national average is 75.
The Balearic Islands (29), Madrid (60) and Catalonia (66) continue to have the lowest Affordability Index. Next come the Basque Country (75), Galicia (78), Andalucía (80), the Canary Islands (83), Navarre (85), Cantabria and Valencia(89). On the other hand, there are seven regions that are above this point, Murcia (118 points), Castilla La Mancha (111) and Aragon (105) having the highest ratio. Asturias (104), La Rioja (103), Castilla y León (102) and Extremadura (101) also exceed the break-even point.
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