The cost of housing remains a pressing concern for residents of the Canary Islands, where a huge portion of monthly income is spent on rent, much more than the Government-recommended 30% cost.
Despite the recent increase in the minimum wage, many tenants continue to struggle with being able to afford it comfortably.
On 11th February, Spain’s minimum wage was raised to €1,184 gross per month over 12 payments. However, data from Idealista’s January 2025 Rental Price Report indicates that in certain areas of the Canary Islands, tenants are forced to allocate more than 90% of this income towards rent.
Rental Prices in the Province of Las Palmas de Gran Canaria
The Las Palmas province records the highest rental cost per square metre, currently standing at €14.30. The historical peak was reached in June 2024, when prices hit €14.60 per square metre.
For a 40-square-metre apartment, the average monthly rent is approximately €572, which is 48.31% of the minimum wage. The burden increases with larger properties: a 50-square-metre home costs around €715 per month, demanding 60.38% of the minimum wage; a 60-square-metre flat requires €858, equating to 72.46% of income; and for an 80-square-metre property, tenants pay an average of €1,144, which absorbs a staggering 96.62% of their earnings.
Rental Costs in the Province of Santa Cruz de Tenerife
In Santa Cruz de Tenerife, rental prices have reached an all-time high, averaging €14.00 per square metre. This mirrors the trends seen in Las Palmas, leaving tenants facing similarly high costs.
For a 40-square-metre apartment, renters pay €560 per month, which accounts for 47.3% of the minimum wage. A 50-square-metre property demands €700 per month, consuming 59.12% of earnings, while a 60-square-metre home costs €840, requiring 70.95% of income. Larger flats of 80 square metres cost around €1,120 per month, leaving tenants with just 5.41% of their salary for other living expenses.
High Rental Costs Leave Little Room for Other Expenses
Even those renting the smallest properties must dedicate nearly half of their gross minimum wage to housing. This calculation does not consider utility bills, or tax deductions, such as whether the minimum wage remains exempt from income tax, which would further reduce disposable income.
Despite efforts to increase earnings, the cost of living crisis continues to affect those in the Canary Islands, making it increasingly difficult for people on low wages to afford housing while covering other essential expenses.
