Spain's Housing Crisis: When Room Rent Surpasses Pension Income for Adults

Spain - Ekhbary News Agency

Spain's Housing Crisis: When Room Rent Surpasses Pension Income for Adults

Spain is grappling with a severe housing crisis, where the escalating cost of rent is disproportionately affecting its adult population. Wages and pensions are failing to keep pace with the soaring prices, compelling a growing number of individuals, including retirees and working professionals, to resort to living in shared rooms – a practice traditionally associated with students. This concerning trend reveals systemic vulnerabilities within the housing market and highlights the urgent need for comprehensive regulatory reform.

The plight of Begoña, a 63-year-old cancer survivor living on a pension, epitomizes this struggle. Residing in a room in Madrid's Barajas neighborhood, she pays 600 euros a month from her 835-euro pension. This means a staggering 68.75% of her income is allocated to rent, far exceeding the recommended 30% threshold. Begoña has already experienced a rent hike from 550 to 600 euros six months ago and now lives in constant dread of another increase in March. "It feels like I'm in a university residence," she quips, adding, "You're always trembling. You're in their hands." Such temporary room rental contracts, falling outside the purview of the comprehensive Housing Law, leave tenants like Begoña exposed to market volatility and potential exploitation by landlords, denying them crucial housing stability.

Begoña's situation, though striking, is not isolated. She represents a segment of 1% of Spaniards over 45 who live in rented rooms, according to Spotahome data, indicating a growing, albeit statistically niche, phenomenon. Unlike traditional shared apartment contracts where tenants collectively assume the total rent, the individual room rental format allows landlords to set prices for each room without restriction, often maximizing profits. Spanish Prime Minister Pedro Sánchez acknowledged this as a "truly worrying trend" last January, prompting government action to curb "abuses in room rentals" and regulate these informal arrangements that bypass the existing Housing Law applicable to other residential contracts.

The government is preparing to roll out new measures, including a legal cap on the maximum rent for a room, ensuring that the sum of all room rents in a property does not exceed the value of the entire dwelling. This aims to prevent scenarios where, for example, a 1,300-euro shared apartment could generate 2,000 euros monthly if rooms are rented individually at 500 euros each. Additionally, the executive is discussing incentives or disincentives through income tax (IRPF) for landlords based on their rental price adjustments. However, Begoña finds these proposals "absurd" and "not right," particularly concerning large property owners, a sentiment echoed by some government partners who view it as a 'reward' for landlords.

Begoña yearns for regulation: "I wish they would regulate it somehow. It's not possible for my rent to go up more [50 euros] than my pension increases annually [about 20 euros]. You're always living with the sword of Damocles over your head." She laments that saving is not an option, with her medical treatment expenses adding to her already strained finances. "I don't refuse to keep paying. But if they raise it more, I won't be able to continue, and if they kick me out, I have nowhere to go." Over the past five years, the average disability pension has revalued by 18.33%, and the average gross salary by 17%. Yet, since 2020, the average price of a rented room nationally has surged by 21%, according to Idealista data, exacerbating the affordability gap.

Elsewhere in Madrid, Nicole (29) and Óscar (36) share a room with a private bathroom in an apartment where the living room was converted into a bedroom. Their combined monthly income of around 1,900 euros is precarious, making shared accommodation their only viable option. Nicole states, "It's impossible to get an apartment unless you give your soul," highlighting the significant barriers foreigners like them face in the traditional housing market. They pay 650 euros for their room, contributing to the 2,150 euros generated monthly by their communal-space-deprived apartment in Hortaleza. Chema (22), a consultant, recently secured a better shared apartment after paying 650 euros for a tiny room. He dedicated 43% of his 1,500-euro salary to rent and saves 300 euros monthly, questioning his future prospects of homeownership. His former flatmate, Diego (40), divorced and working in Madrid, finds living alone impossible, viewing a room with a private bathroom as the closest alternative to having his own space.

These individual narratives collectively paint a picture of a housing market under immense pressure, where the dream of independent living is increasingly out of reach for many adults. The Spanish government's efforts to regulate this segment are crucial, but the depth of the crisis suggests that a multi-faceted approach, addressing both supply and affordability, will be essential to ensure equitable housing access for all its citizens.

Ekhbary News Agency