Housing accounts for more than half of the income of 80% of renters

BarcelonaHousing costs are now a financial burden for the vast majority of the Catalan population. More than 80% must dedicate over 30% of their income to rent payments, and up to 36% must set aside half their salary. This additional strain is significantly lower among homeowners with outstanding mortgages, with percentages of 62% and 20%, respectively. These figures come from the report. Housing, the cement of inequalitiesA report published by Oxfam Intermón highlights that the cost of housing has increased by 56% since 2014 without a corresponding rise in wages. The report paints a picture of a society where housing is the primary driver of social inequality. And more than by neighborhood, the imbalance is determined by whether or not renting is involved. Only 15% of renters can meet the Bank of Spain's recommendation to spend less than a third of their income on housing. In contrast, among those with a mortgage, the percentage reaches 80%. According to Raquel Checa, head of Oxfam Intermón's Zero Inequality campaign, renting has become "the great trap," as soaring prices make saving almost impossible.

In this regard, Checa indicates that between two people with the same salary, the one paying a mortgage can save, while the one renting "has almost no ability to save and must make many more sacrifices" that prevent them from maintaining a good standard of living. In other words, once the effort is made to cover the monthly rent, there is hardly any budget left for leisure or cultural activities, and one must be very careful not to overspend on basic necessities. Nor is it possible to save when owning a home. Thus, 60% of the more than 4,000 people surveyed for this study reported resorting to discounted or heavily discounted food, and more than half had to cut back on shoes and clothing to afford the rent. In short: 53% of renters are unable to save (61% on average in Spain) and live beyond their means, while 57% of homeowners are able to save.

Rising rents are forcing out those who, once rent increases are implemented, cannot afford them. The report reveals that a third of this population group had to move for purely economic reasons. These are what Checa calls "invisible evictions," which primarily affect young people and immigrants.

More subletting

This explains the data showing a delay in the age of emancipation for young people, which now stands at 30. Rising prices mean that many young people have to return to the family home after a period of living independently, while foreigners are increasingly accustomed to more precarious conditions. Both groups must resort to renting rooms, a model that offers less protection—and more abuse—than traditional rentals and which landlords use to circumvent the rent cap imposed in high-demand areas two years ago.

How can this situation be reversed and inequality prevented from deepening? The organization advocates for increased public investment in housing, whether by building new social housing developments—which represent only 1.7% of the total, well below the European average—or by bringing to market the more than three million vacant homes estimated to exist throughout the country. Among other measures, Oxfam Intermón advocates for tax reform that discourages speculation and balances tenant protection with regulated prices and guarantees for landlords. The organization warns that, without action, the current model could solidify a society increasingly divided between those who have access to homeownership and those trapped in the precariousness of renting.