Rental Strain: Growing housing affordability crisis in Valencian Community

Rental Strain: Growing housing affordability crisis in Valencian Community.

Rental Strain: Growing housing affordability crisis in Valencian Community. Image: Reshetnikov_art / Shutterstock.com.

In 2023, the average resident of the Valencian Community had to allocate 44 per cent of their gross salary towards rent, compared to 38 per cent in 2022.

These figures are courtesy of a study titled “Relation of Salaries and Rental Housing in 2023.”

This study, based on data from average salaries from job listings on the InfoJobs platform and average rental housing prices from the Fotocasa Real Estate Index, highlights a significant increase in rental costs.

Throughout 2023, rental housing prices in the Valencian Community saw a steep annual rise of 14.6 per cent, reaching €11.60 per square meter per month by December.

With the average gross salary in the Valencian Community recorded at €25,540 in 2023 (equivalent to €2,128 gross monthly), residents were required to dedicate 44 per cent of their income to renting an 80-square-metre home, marking the highest percentage in the past five years.

Outpacing Salary Growth

The study’s findings underscore a concerning trend where rental prices have soared to historic highs, outpacing salary growth.

This escalation in rental costs has pushed the burden of housing expenses well beyond the recommended threshold set by European control organisations, which advise that no more than 30 per cent of income should be spent on housing.

Currently, this expenditure exceeds the recommended limit by over 10 percentage points compared to a decade ago, resulting in heightened housing unaffordability.

María Matos, Director of Studies and spokesperson for Fotocasa, expresses concern over this trend, emphasising that in most regions of Spain, except for two, the financial strain imposed by rental payments has reached detrimental levels.

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Written by

Anna Ellis

Originally from Derbyshire, Anna has lived in the middle of nowhere on the Costa Blanca for 19 years. She is passionate about her animal family including four dogs and four horses, musicals and cooking.

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