Emancipation in Spain has become an almost impossible mission. The economist Gonzalo Bernardos has put his finger on a problem that distresses thousands of families: the forced delay of life projects.
What used to be done at age 25, buying a house or starting a family, is now postponed until age 35. And, despite the fact that there is more employment than ever, salaries are devoured by sky-high rents, leaving an entire generation trapped in the ‘eternal wait’.
“Everything comes later, and when you realize…”
Bernardos’ diagnosis in Atlantic Today It is devastating: the delay in independence creates a vicious circle from which it is difficult to escape. “Everything comes later: the projects, the savings, the independence. And when you realize, you have spent an entire decade without being able to make the leap into housing,” explains the expert. The reason is mathematical: by spending so much time paying expensive rents, it is impossible to save the “cushion” necessary to apply for a mortgage.
While in Europe the average age to leave home is 26 years, in Spain we do not manage to cross the family threshold until we are 30.4 years old. However, far from what you might think, the real barrier is entry to the purchasing market.
For an average home of 200,000 euros, banks require you to have saved about 60,000 euros (20% of the down payment plus 10% of notary fees and taxes).
With an average net salary of 1,250 euros and rents that in Madrid or Barcelona do not go below 1,100 euros, the bills do not add up. A young man who lives alone allocates 70% of what he earns to his apartment, which means that it will take him almost 20 years to save that amount. The result: renting rooms is now the only way out for 4 out of every 10 workers under 35 years of age.
Permanent contracts, but pockets without money
Although youth unemployment is at historic lows (25.8%), precariousness has changed its face. The discontinuous permanent figure means that many have a contract, but do not work all year round. Without stable income month after month, the bank will deny mortgages, since the maximum payment allowed for these salaries would be 450 euros, something that today is science fiction in the Spanish real estate market.
In such a scenario, Bernardos predicts that owning one’s own home will end up depending on the help of parents thanks to donations, family loans or guarantees; or in the worst case, living on rent for life.