Madrid. For any person, a job and regular income means that he will be able to buy a good home with his family or at least be able to rent a place. But in Spain, which is one of the developed countries of Europe, even this dream is becoming difficult to dream. Here inflation and skyrocketing house prices have created such a situation that even people doing good jobs are not able to buy their houses.
The situation reached such a stage that lakhs of employees had to take to the streets and go on strike. About 40 lakh employees were claimed to have participated in the nationwide strike on November 11. Why are house prices rising so much in Spain and why has it become so difficult for people to buy their own home? Let us understand.
House prices increased, but salaries did not increase that much.
The biggest reason for the housing crisis in Spain is the increasing gap between house prices and people's earnings. That means houses are becoming expensive, but people's salaries are not increasing at that pace.
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According to a report, according to data from the National Statistics Institute of Spain, house prices in the country increased by 84.6 percent between 2015 and 2025. At the same time, between 2015 and 2024, the average annual gross salary of employees increased by only 27.85 percent.
This gap has increased further in recent times. In the second quarter of 2026, house prices increased by 12.2 percent compared to last year, while the average salary increased by only about 3 to 4 percent during the same period. This is directly affecting those people who want to buy their house for the first time. Despite the increase in salary, it is becoming difficult for them to raise the required amount for the down payment of the house.
60000 euros are needed to buy a house worth 200000 euros
The difficulty of buying a house in Spain is not limited to the price of the house alone. For this, a huge amount is required in the beginning itself. According to a report, if a person wants to buy a house worth about 2 lakh euros (about Rs 2.15 crore), then he may need about 60 thousand euros (about Rs 64 lakh) for the down payment and other purchase related costs.
That is, even if a person's monthly income is decent, it is not easy for him to raise such a huge amount at once. Especially when a major part of his income already goes towards rent and daily expenses. In such a situation, those people get benefit who can get financial help from parents or family to buy a house. Whereas for people trying to buy a home on their own, the task is becoming increasingly difficult.
Shortage of 7.5 lakh houses, construction much less than demand
Lack of houses in Spain is also a major reason for this crisis. The number of people buying and renting houses is increasing, but new houses are not being built accordingly. According to the report, according to the estimates of the Central Bank of Spain, a shortage of about 7.5 lakh houses has accumulated in the country between 2021 and 2025. Only in 2025, about 2.25 lakh new families were formed, whereas during this period only 92 thousand new houses were built.
This means that the construction of houses is much less than the number of new families who need houses to live in. The result is that competition for available homes is increasing and landlords are in a position to charge arbitrary rents. According to a report, the Central Bank of Spain estimates that by 2028 the shortage of houses in the country may increase to more than 1 million. Due to this, the problem of buying a house and living on rent is likely to increase in the future.
A large part of the income is going towards rent, poverty is increasing
The number of people in Spain is also increasing who have a job, but after paying the house rent, they do not have enough money left for other essential expenses. According to the report, a study by Oxfam Intermon revealed that about 7.7 lakh workers in Spain are facing financial problems due to the rising cost of housing. One in three people living in market rented houses is falling into poverty after paying rent.
Citing data from the Central Bank of Spain, the report shows that 4 out of every 10 renting families are spending more than 40 percent of their income on home. This means that people have very little money left for food, transport, savings and other needs. The situation of youth is also similar. According to the report, in 2025, 44.3 percent of youth aged 26 to 34 years were living with their parents. Of these, 47.3 percent cited financial inability to buy or rent a house as the main reason.
According to the Central Bank of Spain, youth here are able to leave their parents' home at an average age of 30.4 years, whereas in the European Union this average age is 26.2 years. This means that despite having a job and earning, it has become difficult for the youth to start living independently.
Why did 40 lakh people come out on the streets?
The increasing problem of buying a house and paying rent is no longer just an economic issue, but has become a big social and political issue in the country. According to a report by Deutsche Welle on November 11, there was a nationwide general strike in Spain for the first time in 14 years. In this, two big trade unions of the country, CCOO and UGT, took the lead. Along with these, other labor organizations and tenants' organizations also participated.
According to an Australian news report on November 12, the unions claimed that about 40 lakh employees participated in the strike. However, this was the figures of the unions. Trade organizations differed on how many people actually stopped working during the strike. The purpose of the strike was not just to demand increase in salary. Employees want the government to take concrete steps on problems like rising house prices, expensive rents and evictions.