Post by account_disabled on Feb 11, 2024 1:48:07 GMT -8
The percentage of household income necessary to access a home grew to 22% in the case of purchasing and up to 33% in the case of renting during the last year, according to a study published by idealista based on data from the fourth quarter of 2023.
For Francisco Iñareta, spokesperson for idealista , “the reasons for the increase in effort in purchasing and renting are different. The rise in financing costs is the main reason in the case of homes for sale, while the rise in prices caused by the constant Australia Telemarketing Data
eduction in supply explains the increase in rental effort. The outlook in the case of rentals is negative, not only in relation to price but if housing policies are maintained (or tightened as in the case of Catalonia) it will not be possible to reverse the process of los s of supply, which will increase the difficulties for families to access rental housing, with special impact on the most vulnerable profiles. In the case of home purchases, it is possible that the ECB's announced rate reduction in the third quarter of this year will manage to slightly lower the cost of financing, which would mean a reduction in effort if demand does not increase strongly and “it pushes prices up.”
The lack of supply and the resulting increase in prices is the reason why the effort to rent has reached the maximum recommended by experts with an increase of three points in the last year. The increased cost of financing seems to be responsible for the fact that families who buy a home have gone from having to allocate 18% of their income in December 2022 to the current 22%.
The cities of Barcelona, Palma and Valencia lead the greatest effort in leasing
There are 10 capitals in which the effort to rent a two-bedroom home exceeds the 30% recommended by experts. Barcelona is the one that requires the highest percentage of household income (44%), followed by Palma (43%), Valencia (39%), Málaga (38%), Madrid (37%), Alicante (35%), as well as as in San Sebastián (33%), Las Palmas de Gran Canaria (32%), Bilbao (30%) and Segovia (30%).
Below these figures we find Seville (29%), Santa Cruz de Tenerife (29%), Girona (28%), Vitoria (28%), Cádiz (27%) and Granada (27%). On the contrary, the least effort is requested in Ciudad Real (16%), Teruel (17%), Palencia (18%), Zamora, Jaén and Cáceres (19% in the 3 cases).
Palma is the city in which the effort to rent has grown the most, since it has increased by 10 points. It is followed by Valencia (8 points), Segovia (7 points), Las Palmas de Gran Canaria, Barcelona and Madrid (6 points in the 3 cities). With an increase of five points of effort are Girona, Málaga and Alicante, while in San Sebastián it has grown by four points. No capital has reduced the level of rent requirements and only in five cases has it remained the same as last year: Melilla, Ávila, Valladolid, León and Albacete.
For Francisco Iñareta, spokesperson for idealista , “the reasons for the increase in effort in purchasing and renting are different. The rise in financing costs is the main reason in the case of homes for sale, while the rise in prices caused by the constant Australia Telemarketing Data
eduction in supply explains the increase in rental effort. The outlook in the case of rentals is negative, not only in relation to price but if housing policies are maintained (or tightened as in the case of Catalonia) it will not be possible to reverse the process of los s of supply, which will increase the difficulties for families to access rental housing, with special impact on the most vulnerable profiles. In the case of home purchases, it is possible that the ECB's announced rate reduction in the third quarter of this year will manage to slightly lower the cost of financing, which would mean a reduction in effort if demand does not increase strongly and “it pushes prices up.”
The lack of supply and the resulting increase in prices is the reason why the effort to rent has reached the maximum recommended by experts with an increase of three points in the last year. The increased cost of financing seems to be responsible for the fact that families who buy a home have gone from having to allocate 18% of their income in December 2022 to the current 22%.
The cities of Barcelona, Palma and Valencia lead the greatest effort in leasing
There are 10 capitals in which the effort to rent a two-bedroom home exceeds the 30% recommended by experts. Barcelona is the one that requires the highest percentage of household income (44%), followed by Palma (43%), Valencia (39%), Málaga (38%), Madrid (37%), Alicante (35%), as well as as in San Sebastián (33%), Las Palmas de Gran Canaria (32%), Bilbao (30%) and Segovia (30%).
Below these figures we find Seville (29%), Santa Cruz de Tenerife (29%), Girona (28%), Vitoria (28%), Cádiz (27%) and Granada (27%). On the contrary, the least effort is requested in Ciudad Real (16%), Teruel (17%), Palencia (18%), Zamora, Jaén and Cáceres (19% in the 3 cases).
Palma is the city in which the effort to rent has grown the most, since it has increased by 10 points. It is followed by Valencia (8 points), Segovia (7 points), Las Palmas de Gran Canaria, Barcelona and Madrid (6 points in the 3 cities). With an increase of five points of effort are Girona, Málaga and Alicante, while in San Sebastián it has grown by four points. No capital has reduced the level of rent requirements and only in five cases has it remained the same as last year: Melilla, Ávila, Valladolid, León and Albacete.