Rising rent and living costs crush Spain’s next generation

Young adults in Spain are increasingly finding it difficult to live independently, as rising rent, inflation and the increasing cost of basic services squeeze household budgets. Electricity, water, fuel, groceries, internet and transport all contribute to monthly expenses, making it hard for many to save or plan long‑term.

Recent studies illustrate the severity of the situation. Renters across Spain are now dedicating around 47% of their gross income to housing costs, the highest level recorded in the past five years. The trend marks a sharp departure from earlier years: in 2019 the same metric was roughly 38%.

Across the country, wage growth has not kept pace with the steep rise in housing costs. The average gross annual salary was around €27,060 (equivalent to roughly €2,255/month gross), which represents a modest 3.1 % increase over the previous year,  however many Spaniards and expats live on less that €1.500 a month. Meanwhile, rental prices jumped 14% year‑on‑year, reaching approximately €13.29 per square metre/month by December 2024. For a standard 80 m² flat, that implies more than €1,060/month in rent, a substantial burden for many.

To have a closer look at the reality of the situation, Euro Weekly News spoke to several youths between the ages of 20 and 35 to discover what their current thoughts are

Day-to-Day Costs Compound the Problem

Energy, transport and basic necessities

Housing costs alone are just part of the pressure. Recent inflation in Spain has significantly increased the cost of essential bills,  energy, utilities, groceries, as well as transportation and commuting costs. For young adults earning modest wages, these mounting expenses erode any remaining disposable income, leaving almost nothing set aside for savings or emergencies.

As Carlos, 24, from Cádiz puts it: “Unless we move in with a friend or a partner, we can’t afford it… You can’t save, not even for an emergency. Between rent, petrol, food, internet and electricity, there’s nothing left.”

Housing and Mortgage Challenges

Property ownership out of reach

The gap between income and living costs makes homeownership increasingly unattainable for many. Deposits required for mortgages, often amounting to tens of thousands of euros, are now beyond reach for most young adults, especially those earning modest incomes. Even renting proves a precarious option.

As Lucía, 32, observes: “How am I going to get a mortgage? Unless I inherit, there’s no way I can even put €20,000 down, It’s a joke.”

Such pressures force many into shared housing or extended dependence on family, and reduce the chances of ever owning a home or achieving long‑term financial stability.

Young Expats Face Similar Struggles

Rising costs affect newcomers too

The housing and cost-of-living crisis isn’t limited to Spanish-born youth. Young expatriates also report being unable to afford independent living under current conditions.

Sophie, 30, from Benalmadena , explains: “ ten years ago, you could rent a one-bedroom flat for around €400; now the average is €800 plus water and electricity, if you can even find one. How can I afford that if I’m earning €1,000? I don’t even get a chance at being independent.”

Shared Living and Delayed Milestones

Living with flatmates and family

As independent renting becomes unaffordable, many young people extend shared living arrangements well into their late twenties or beyond. Ana, 26, recalls: “When I was 18 at university, we shared a flat, I’m still doing that at 26 because I can’t manage rent alone.”

Family life postponed

For a growing number, the idea of starting a family has been pushed far into the future, or abandoned entirely. Javier, 28, says: “Having a family isn’t even a card on the table for me and my wife now. I can’t even manage a basic life by myself because of inflation and rental prices.”

Starting a Family Out of Reach

Financial pressures delay family planning

High living costs, steep rents, rising bills and general economic uncertainty are making it increasingly difficult for young couples to consider long-term commitments like buying a home or raising children.

Isabel, 28, says: “I was looking at settling down and starting a family with my partner, but the cost of living is stopping us from doing that. It’s sad our choices and futures get controlled by the country’s current economy, I feel abandoned by the government who have allowed it get to this extreme .”

With budgets squeezed and no room for savings or security, family planning seems like a distant dream, not a viable option.

Key Facts

• As of 2024, renters in Spain spend on average 47% of gross income on housing (up from 38% in 2019).
• Rental prices rose 14% in 2024, reaching ~€13.29/m² per month nationwide.
• Average gross annual salary was reported at ~€27,060 in 2024.
• In high‑cost areas such as the capital, renters spend between 64% and 71% of income on rent.
• A rising number of households are spending well above the recommended 30% threshold for housing costs, a sign of systemic affordability issues.

Government Attention and Generational Concerns

Calls for policy intervention

Analysts and housing experts warn that unless measures are taken, such as rent control, increased affordable housing stock, or wage and labour reforms, the affordability crisis will continue to trap generations of young people in precarious living conditions. With many unable to save, achieve financial independence, or even contemplate long-term commitments like buying property or raising a family, the social and demographic consequences may be profound.

There is increasing pressure on policymakers to respond to what many see as a structural housing and cost-of-living emergency, one that affects not just individuals, but the future of households, families and social stability.