Spain is not a country for homeowners. At least if we’re talking about people under 30. This is clearly reflected by INE data, which shows that the rental housing footprint among the young population has expanded over time, reaching an overwhelming size. And to show a button. Or percentage, if applicable: According to the statistics institute’s calculations, almost 57% of households with people aged 16 to 29 in 2023 were tenants; This marks the highest percentage since at least 2004, when it was first documented by INE. on the website.

But the numbers tell us much more.

Kira and young people. The result left by INE tables is clear. rotunda When it comes to looking for housing, renting is the majority option among the youngest. So much so that the incidence in younger age groups has skyrocketed to record levels, far exceeding levels recorded a few years ago. When we look at the youngest age group, those aged 16-29, the rental regime was dominant in 56.6 percent of households in 2023.

If we expand the focus a little further to include the 30-44 age range, it represents 34.3%. In 2007, only 18.1% of households in this age group were paying rent. In both cases (both in the 16-29 age range and in the 30-44 age range) these are the highest values ​​in the last two decades. And at least that’s the case since INE only allows going back to 2004.

So what kind of rent? INE allows us to partially answer this question. It can be seen from the paintings that the majority of young people who rent do so in houses rented at market prices.

In 2023, 48.7% of total households of people aged 16 to 29 were in this category; This was well above the 7.9% who rented a home at less than market value. Data from the statistical observatory are relevant because they separate residences by “reference person,” a label that refers to the person responsible for the household.

Age change, drawing change. When we look at older age groups, photography is quite different. For example, in households with reference persons aged 45 to 64, ownership is by far the most popular option: 78.5% of cases fall under this regime.

This figure is still quite high, although it is below the figure reached just before the brick crisis at the turn of the century. In 2005, 86.6% of the houses belonged to people aged 45-64. Among people over 65, the weight of ownership is even more pronounced: it reaches 89.1 percent, while renting represents a very weak share of 7.6 percent. Therefore, their drawings are in stark contrast to the drawings of the young participants.

Real estate is losing ground. In the global image, owning a home continues to be the most important option, regardless of age group. If we leave aside criteria such as the year in which people were born and their gender, we see that 75.1 percent of the houses were owners last year. The data resonates, but it also contributes to an interpretation that shows weight loss among families living in purchased homes: in 2005, the rate was around 80.5%.

generation gap. The data points to another important finding: the generation gap in the housing market appears to be widening. Or in other words, whether you live under a lease or in a home you own, your age increasingly reveals how you live. While the latter option predominates in older households, it is a minority in households with young people and appears to be slowly losing ground.

In November, Marina García, who participated in the project, said: “Those under the age of 35 can no longer save real estate assets. While the proportion of young people who own their own home was almost 70% in 2000, this rate was 36% in 2020.” she said. Preparation of the ‘Household Finances 2000 – 2022’ study.

For him, the real issue lies in the loss of real income, the instability of employment and the increase in rent. Daniel Manzano, one of the authors of the report, told the 20Minutos newspaper: “This is not a conflict of generations, the real problem is the non-payment of income.” The difference would be less.”

Young… and dispossessed. Two other handicaps are the increase in prices in the housing market and the narrowing of access to credit. INE data, reflected in the House Price Index (IPV), shows that housing becomes more expensive by an average of 4% in 2023; This is a noticeable recovery, but below the 7.4% recorded a year ago. In any case, it is not just the buying and selling prices that are becoming more expensive.

Another recent study shows the second key to understanding the challenges of buying a home. It is becoming increasingly difficult to meet the conditions of banks to open the credit tap. So much so that mortgages are already luxury products to some extent. A report published by Clikalia just a few weeks ago reflects that only 39% of Spaniards with income can access credit without crossing the red line of the effort threshold required by banks.

Image | Ján Jakub Naništa (Unsplash)

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