The real estate market in Spain is through the roof, both in terms of renting and purchasing, which, together with low salaries, only consolidates poverty in our country more and more. Despite the recently approved increase in the SMI, salaries are not enough to buy a house, since the price of housing does not stop rising uncontrollably.
A labor and structural poverty to which the economist Niño Becerra puts figures, revealing a reality that is already difficult to hide: working no longer guarantees making ends meet, much less being able to pay for a property. In Spain, those who earn less than 60% of the median income are considered poor, a figure that is around 11,000 euros per year, so “if a person works legally, they contribute to Social Security, but they do not reach that amount because they do not add enough hours, they are poor,” explains the economics professor.
Housing requires a superhuman effort
Currently, the largest outlay that Spanish households have to face is related to housing. The most recent statistics on the rental market reflect historical highs: in the Balearic Islands, renting a property implies allocating 60% of the income; in Malaga, close to 49%; and in Madrid, above 41%. All of these percentages far exceed the 35% that specialists place as an advisable limit.
“It is the greatest effort by families since mid-2011,” says Niño Becerra. In his opinion, the root of the problem is not temporary, but structural: the available supply is very limited in the face of a constantly increasing demand. “Very little housing is built and that inevitably puts pressure on prices.”
“Inflated” wealth
The economist also questions the method with which wealth is calculated in Spain. Since the 1980s, remember, it was taken for granted that the habitual residence should be included as part of the heritage. “It’s a fallacy,” he says. Owning a house valued at one million euros does not automatically make someone rich if it is their main residence and they need another home to live in.
According to Niño Becerra, only second homes or properties intended for rent or that remain empty should be counted as assets, since they have a real market value. “The other thing is to cheat us to inflate the wealth of the Spanish people,” he maintains.
Data on large landowners support this thesis. In Madrid there are already more than 75,000 people with three homes and more than 500 owners who accumulate up to 50 properties, concentrated not only in the capital, but also in municipalities such as Alcobendas, Parla or Getafe.
In conclusion, he argues that the key is to expand the offer. “Housing cannot be devalued, but it can be deflated.” If the 700,000 homes that the Bank of Spain considers necessary were suddenly put on the market, prices would fall immediately. However, many of those that already exist are unfinished, in poor condition or located in areas where there is not enough demand.
Meanwhile, access to housing continues to be the main element that pushes an increasing number of workers into situations of poverty.