Rising property prices expose the widening gap between employment and economic security.
MADRID
Having a job no longer guarantees access to affordable housing in Spain, where property prices have risen far faster than wages over the past decade. New figures from Spain’s National Statistics Institute and research by Oxfam Intermón reveal how housing costs are eroding household incomes, leaving even employed residents struggling to maintain financial stability.
Between 2015 and 2025, Spanish house prices increased by 84.6%, compared with a 27.85% rise in average gross annual salaries between 2015 and 2024. Although these periods are not identical, the figures illustrate a substantial divergence between earnings and housing prices.
The average annual gross salary reached €29,540 in 2024, insufficient for many households to comfortably rent or purchase accommodation in high-demand urban areas.
Oxfam Intermón estimates that Spain’s in-work poverty rate rises from 11.48% to 15.49% when housing expenses are deducted from household resources. Its analysis, based on 2024 data, identifies approximately 770,000 additional workers falling below the adjusted poverty threshold because of housing costs.
The report estimates that nearly three million employed people experience poverty after housing expenditure is considered. Renters face particularly severe pressure: 34.08% of employed people renting at market rates fall below the adjusted threshold, compared with substantially lower proportions among homeowners.
The consequences extend beyond monthly affordability. High rents reduce the money available for savings, making it increasingly difficult for younger workers to accumulate the deposit required to purchase a property.
Economist Rafael Pampillón of Madrid’s San Pablo-CEU University argues that the problem is structural, involving housing supply, construction delays and financing requirements rather than wages alone.
For a property costing approximately €200,000, prospective buyers may need around €60,000 for a deposit and associated expenses. Workers without family financial support can face substantially greater barriers to homeownership.
Spain’s central bank estimates that the country accumulated a housing shortfall of approximately 750,000 units between 2021 and 2025. In 2025, around 225,000 new households were formed, while approximately 92,000 homes were completed.
These imbalances have intensified pressure in major cities and tourism destinations, where housing availability is constrained by competing demands.
Trade unions have responded by calling a nationwide strike for November 11, seeking higher wages and stronger measures to improve affordability. Their demands include increased public housing investment and policies addressing property prices.
Economists nevertheless caution that wage increases alone cannot resolve a shortage of available homes. Construction capacity, planning procedures, infrastructure and social housing provision all influence long-term access.
Spain’s housing crisis increasingly exposes a fundamental economic tension: employment may provide an income, but that income no longer guarantees the material conditions traditionally associated with financial independence.
Beyond the Numbers, the Consequences.