For the first time ever, the average rental cost in the Canary Islands has exceeded the significant milestone of 1,000 euros per month, reaching an average of 1,110 euros in June—a notable 8% increase over the past year, as reported by the real estate portal Fotocasa. This trend mirrors a nationwide escalation, with Spain’s average rental price per square meter climbing by 9% year-on-year to 12.65 euros, which equates to 1,012 euros monthly for an 80 square meter property.
Escalating Costs and Supply Challenges
The primary driver behind this steep increase is the sharp decline in available rental properties, which has plummeted by nearly 30% in recent years, combined with sustained high demand across the region. This tightening market is not only pushing up rental prices but also intensifying housing access issues, sparking widespread protests and compelling governmental action.
Economic Strain on Renters
The economic burden of these rental increases is considerable. With the average Spanish salary at about 2,099 euros, tenants now spend roughly 48% of their monthly income on rent, far exceeding the 30% affordability threshold recommended by financial advisors. The strain is even more pronounced among younger renters, who typically earn less; those in this demographic face a rental cost that consumes 61% of their average income.
Regional Disparities in Rental Costs
The disparity in rental costs is evident across various Spanish regions. The Community of Madrid leads with the steepest year-on-year increase of 18%, where an 80 square meter apartment now costs an average of 1,577 euros monthly. The Balearic Islands and Catalonia follow, with average rents of 1,447 euros and 1,381 euros respectively. Even less expensive regions like the Canary Islands and Cantabria see average rents surpassing the 1,000 euro mark.
Barcelona and Madrid: Spain’s Priciest Cities
Barcelona tops the list as Spain’s most expensive city for renters, with an average monthly cost of 1,775 euros for an 80 square meter apartment, followed closely by Madrid at 1,682 euros. These cities stand out as the only ones where the price per square meter exceeds 20 euros. In contrast, Extremadura and Castilla-La Mancha offer the most affordable rental options in Spain, significantly below the national average.
This escalating rental landscape highlights a critical challenge facing residents and policymakers alike, as the cost of living continues to rise, impacting affordability and quality of life across Spain.
