Half of Spanish renters face conditions of ‘severe poverty’

By Alyssa McMurtry

OVIEDO, Spain (AA) — Half of Spanish renters are left in conditions of relative severe poverty after paying for housing, according to a study published Wednesday by the Barcelona Urban Investigation Institute (IDRA).

The institute defines severe poverty as having less than €561 ($591) remaining after paying rent.

Although experts recommend spending no more than 30% of one’s income on housing, an estimated one in three renters in Spain spend more than half of their monthly earnings just to secure a place to live.

Families are in the worst situation, according to the study, with around half spending more than 40% of their income on rent.

“In contrast to what happens in other European countries like France, Germany, or the Netherlands, living as a renter in Spain is synonymous with insecurity and financial stress,” the report said.

The study suggests that while rental costs are high across Europe, the problem is particularly acute in Spain due to the lack of indefinite rental contracts.

In Madrid and Barcelona, the study found that around 90% of renters have temporary contracts, leaving them vulnerable to speculation and price increases that outpace inflation.

The lack of long-term contracts also forces many renters out of their homes. In Madrid, more than 60% of renters have moved in the last five years, while in Barcelona, the figure rises to 80%.

Renting is also less common in Spain compared to other European countries. According to the study, just 18.7% of homes nationwide were rented in 2023, although this represents a significant increase from 13.5% in 2007.

Last year, Spain passed a housing law aimed at alleviating the cost of living crisis. While it has achieved some price drops in Catalonia, according to Spain’s government, not all regional governments are implementing its mechanisms.

Speaking in Spain’s parliament last month, Prime Minister Pedro Sanchez admitted that the government still has “a lot to do,” noting that subsidized housing in Spain accounts for only 2% of the total stock, compared to 9% across Europe.

Over the weekend, Sanchez announced plans to create a central government-run public housing corporation to build and manage affordable housing.