Access to housing is the fifth most important problem for Catalans according to the CIS, and the third for those under 35 years of age, of whom more than 70% live rented. The high cost of housing, while real salaries have lost purchasing power, economically suffocates those who are not owners, leaves them without savings to buy housing and is the main cause of the breakdown of the social elevator.
Two million more people, almost all renting
Catalonia has gained 2 million inhabitants in a decade in which it has built 162,000 homes. The new residents, mostly immigrants with low-paid jobs, have largely concentrated in the rental market, in which rents have skyrocketed, now reaching an average of 16.5 euros/m2/month, 40% higher than those at the peak of the real estate bubble, in 2007. In the city of Barcelona, ??the average rent is 1,136 euros per month, when the Minimum Interprofessional Salary, in 12 payments, is 1,323 euros/month.
Second homes and expats raise prices
The average price of housing has remained stable since 2007 and is 2,352 euros/m2, according to Idealista. But there are great geographical differences, and in tourist towns and around Barcelona prices have risen sharply, driven in this case by other types of foreigners, wealthy, who buy a second home or settle permanently, as professionals. expatriates or digital nomads. Thus, in Eixample, for example, housing is 22% more expensive than at the peak of the real estate boom and reaches an average price of 5,325 euros/m2. To make matters even worse, interest rates have skyrocketed, with the Euribor at 3.7%, and with them mortgage payments.
The young, the elderly affected
The housing shortage especially affects young people: of the population between 16 and 34 years old, only 21% have become emancipated, according to the Spanish Youth Council. It is the highest rate in Spain, but at the cost of flat-sharing becoming widespread. Having the down payment to buy a home – typically 30% of the sales price, since taxes must be included – requires them to save their entire salary for 4.5 years.
A manna of tax revenue for administrations
Housing is an essential good, but also a great source of tax revenue, since around 25% of its price is taxes, which go to all administrations: to the central State (for the VAT on new housing, 10% , and all materials), the Generalitat (for 10% of the property transfer tax) and the town councils (for licenses in all phases of the work).
Illegal occupation replaces the lack of social housing
The administrations have forgotten about rent, especially for vulnerable families: throughout Spain, 75,000 social housing units have been completed in a decade (11,500 in Catalonia), the majority built by private companies, although the pace of construction has increased in recent years. years.
Only half of these protected homes have been used for rent, meaning that the social housing stock in Catalonia is 1.7%, when the European average is 9.3%, and is around 20% in the eurozone. For many vulnerable families, the only effective way to access housing has been illegal occupation, but this in turn has generated mafias, abuses and neighborhood conflicts.
A political flag for all parties
Social pressure, and the interest in attracting the vote of young voters, has led left-wing parties, especially Comuns, the CUP and ERC, in recent years to make housing their star policy, focusing their measures on control. rents and pressure on landlords. Junts and the PSC, although somewhat reluctantly, have joined these policies. In 2016, both supported forcing large holders to offer social rent. And the PSOE, from the State Government, has also approved measures along these lines such as the state Housing law, the rent freeze proposed by the Generalitat, or the ban on evictions. PP and Vox, for their part, have focused on illegal occupation and the problems it generates, such as insecurity
Europe chooses to build and provide direct rental aid
These measures have not stopped the housing price. Other countries, such as France or Germany, are exploring new avenues after also unsuccessfully applying income controls, which are more lax than the Catalans. Thus, Germany has a program to invest 45,000 million until 2030 to build 2 million homes, 25% of the assessed price, and provides rental aid of up to 1,200 euros/month for families with low income. In Ireland, Dublin has approved a plan to build 40,000 public rental homes by 2028, and as an emergency mechanism it rents apartments to large funds that re-let at an affordable price to vulnerable families. Great Britain also provides aid to tenants, which can reach 430 euros per week. In Catalonia, as in Spain, the public budget allocated to housing does not reach 1% of the total.
