For home purchases, the effort rate rose from 20.9 per cent to 23.1 per cent over the past year, while the rental rate rose from 31.6 per cent to 35.7 per cent.
According to a study published by Idealista based on data for the second quarter of 2020, the proportion of family income needed to access a home rose to 23.1% in the case of buying and 35.7% in the case of renting over the past year. 2024. The lack of supply and the resulting rise in prices are the reason why rental efforts have reached the maximum recommended by experts, with an increase of four points over the last year.
According to Francisco Iñáreta, spokesman for Idealista , "as we expected, the effort required from families deteriorated again this quarter due to the persistent lack of offers available for both sale and rent. Markets continue to become increasingly tight under the pressure of increasing demand which is finding fewer and fewer homes available, driving up prices and causing an increase in required family effort. In the rental sector, the fatal consequences of the Housing Act and all the rent measures approved over the last 6 years are evident, despite the lack of political will to repeal them.
In sales, the lack of supply is manifesting itself in all its harshness in the decades-long paralysis of new house building in the most sought-after neighbourhoods, the effects of which are being felt at the moment. Unfortunately, new homes take years to build, so it is unlikely that there will be large arrays of new homes in the short to medium term, which could ease the strain on markets and bring prices down."
Barcelona, the capital where renting requires the most effort
There are 11 capital cities where the cost of renting a two-bedroom home exceeds the 30% recommended by experts. Barcelona is the country that requires the highest percentage of family income (46%), followed by Palma (45%), Malaga (42%), Valencia (41%), Madrid (38%), Alicante (37%). as well as in San Sebastian (33%), Las Palmas de Gran Canaria (32%), Santa Cruz de Tenerife (32%), Bilbao (31%) and Segovia (31%). Below these figures we see Seville (29%), Vitoria (27%), Cadiz (26%), Pamplona (26%), Granada (26%) and Santander (26%). In contrast, Ciudad Real (16 per cent), Teruel (18 per cent), Jaén (18 per cent), Cáceres, Palencia and Cuenca (19 per cent in the three cities) require the least effort.
Segovia is the city where the rental effort increased the most, as it increased by 6 points. This is followed by Málaga (with 5 points), Valencia (with 5 points), Madrid and Barcelona (4 points each in both cases). The 5 capitals have lower rental efforts than a year ago, they are Cuenca with a drop of 2 points, Tarragona, Cordoba, Jaén and Badajoz (-1 point in all).
The province of Málaga is the one that requires the most effort from locals to rent, as it reaches 54% of household income. This is followed by the Balearic Islands (53%), Barcelona (43%), Valencia (40%), Santa Cruz de Tenerife (38%), Las Palmas, Alicante and Madrid (37% in the three provinces). Also above 30% are Guipuzcoa (34%), Seville (30%) and Cadiz (30%). Teruel (16%), Palencia, Jaén and Ciudad Real (19% in three provinces) are the four countries with the least effort required.
2Q 2024 | Provincial capitals | Speed of access to housing
Family income required to buy and rent a house and its dynamics from year to year (p.).
* pp = percentage points
** The effort ratio measures the weight of a home in a household's purchasing power for a typical two-bedroom property.
*** Purple indicates metropolitan areas where effort is around or above 30% of household income. Experts recommend that this effort rate should not exceed 30 per cent of household income, according to INE.
In five capital cities, the level of buying effort exceeds 30 per cent.
In most cases, buying requires less effort than renting, with the exception of the markets of San Sebastian, Cadiz, Granada and Coruña. In addition, there are five capitals where effort rates exceed the 30% recommended by experts: Palma (44%), San Sebastian (39%), Málaga (38%), Madrid (34%) and Barcelona (31%). . They are followed by the cities of Alicante (29%), Cadiz (29%), Granada (27%), Valencia, Las Palmas de Gran Canaria and Pamplona (26% in all three cases). The lowest level of effort is found in Jaén (11%), Lerida (11%), Ciudad Real, Palencia, Teruel, Huelva, Zamora and Murcia (13% in 6 cities).
Buying 6 capitals requires less effort than a year ago. Barcelona and Albacete recorded the biggest difference (2 points each), followed by Huelva, Cuenca, Palma and Badajoz (each dropped 1 point). On the opposite side of the table, Malaga (8 points), Madrid (6 points), Cadiz (6 points), Santa Cruz de Tenerife (6 points) and Alicante (5 points) all saw their efforts rise.
Among the Balearic provinces, it is the one that requires the most effort: it accounts for 44 per cent of household income. This is followed by Malaga (42%), Santa Cruz de Tenerife (36%), Alicante (30%), Madrid (26%) and Las Palmas (26%). In the province of Barcelona it stands at 20 per cent. With an index of 11%, the least demanding to buy a home are the provinces of Lerida, Teruel, Toledo and Ciudad Real.
Q2 2024 | Province | Speed of access to housing
Family income required to buy and rent a house and its dynamics from year to year (p.).
* pp = percentage points
** The effort ratio measures the weight of a home in a household's purchasing power for a typical two-bedroom property.
*** Purple indicates metropolitan areas where effort is around or above 30% of household income. Experts recommend that this effort rate should not exceed 30 per cent of household income, according to INE.
Methodology
The effort rate measures the impact of a home on a household's purchasing power. Specifically, in the case of renting in idealista, it measures the effort rate as the annual share of a household's average net income that is allocated to paying rent for a typical two-bedroom home. Rental costs come directly from Idealista's data source, which provides prices for each city. In contrast, data on net household income comes from the National Institute of Statistics (INE).
Similarly, in the case of sales, the rate of effort is calculated as the annual proportion of net household income that goes towards paying a "typical" mortgage, in the sense that it is driven by the average characteristics in Term and Interest Rate. Due to the recent increase in interest rates, the calculation has been updated to take into account the data published by the ECB.
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