For the first time in history, the average long-term rental price in the Canary Islands has passed the €1,000 a month mark, reflecting a significant surge in the cost of living. According to real estate portal Fotocasa, the average rental cost reached €1,110 in June, an 8% increase from the previous year.
This trend is consistent with the nationwide rise, where Spain’s average rental price per square metre has climbed by 9% year-on-year to €12.65, equating to €1,012 monthly for an 80 square metre property.
The primary factor behind this sharp increase is the steep decline in available properties on the residential rental market, which have dropped by nearly 30% in recent years. Coupled with sustained high demand across the region, this tightening market is driving up rental prices and intensifying issues of access to affordable housing.
The resulting crisis has sparked widespread protests and compelled governmental action to address the growing problem.
The economic burden of these rental increases is substantial. With the average Spanish salary around €2,099, tenants now spend almost 50% of their monthly income on rent, far exceeding the 30% affordability threshold recommended by financial advisors.
Younger renters, who typically earn less, are hit even harder, with rents consuming over 60% of their average monthly income.
The disparity in rental costs is evident across various regions of Spain. Madrid has had the biggest year-on-year increase of 18%, where an 80 square metre apartment now averages €1,577 a month. The Balearic Islands and Catalonia follow, with average rents of €1,447 and €1,381 respectively. Even traditionally less expensive regions like Cantabria have seen average rents surpass the €1,000 mark.
Barcelona tops the list as Spain’s most expensive city for renters, with an average monthly cost of €1,775 for an 80 square metre apartment, closely followed by Madrid at €1,682. These cities are notable for being the only ones where the price per square metre exceeds €20.
In contrast, regions like Extremadura and Castilla-La Mancha offer the most affordable rental options, significantly below the national average.
This escalating problem with rentals presents a difficult challenge for residents and policymakers alike. As the cost of living continues to rise, it impacts affordability and quality of life across Spain, necessitating urgent attention and solutions to ensure sustainable living conditions for all.
