Youth housing affordability in Spain versus the EU
Fecha: septiembre 2023
Raymond Torres
Housing affordability
SEFO, Spanish and International Economic & Financial Outlook, V. 12 N.º 5 (September 2023)
The issue of housing affordability for youth is particularly pronounced in Spain and appears to have worsened in recent years. This may well be related to other socio-economic problems, such as the increase in the age at which young Spaniards are leaving home to above the age of 30, compared to an EU average of 26.4. The lack of a stock of an abundant supply of houses for rent at affordable prices is one of the biggest causes. Interestingly, despite the labour market challenges facing the Spanish youth, this does not appear to be the main factor affecting youth housing affordability in Spain. The solution to this problem therefore involves increasing supply, particularly in the rental segment. There are a host of international experiences to look at. Increasingly, given constraints to public treasuries for spearheading the required increase in supply via public sector investment, responses are taking the form of targeted incentives designed to provide young people with more affordable options.