September 30, 2020

Appraisal Society. How many years should I work to buy a home?

Appraisal Society. How many years should I work to buy a home?

The Spanish citizen who wishes to access a medium-sized home must allocate 7.3 years of work income for it, one tenth more than what was recorded in the first quarter of 2017, as shown by the "Real Estate Effort Index" of Appraisal Society (ST). This indicator is specifically calculated for each Autonomous Community and takes into account the market value of housing and annual gross average income published by the National Institute of Statistics (INE) in its annual salary structure survey.

Thus, by regions, the Balearic Islands, with an entire outlay of the salary of 15.7 years, is still the autonomous community where it takes more years to access a home. Behind, followed by Catalonia (8.3 years), Madrid (7.9 years), Galicia, the Canary Islands and the Basque Country (7.2 years), Andalusia (6.9 years), Cantabria (6.8 years) and Navarra (6.1 years). Below six years are Castilla y León (5.7 years), Valencia (5.6 years), Asturias, Castilla-La Mancha and Extremadura (5.3 years) and Aragon (5.2 years). La Rioja (4.8 years) and Murcia (4.9 years), which are the earliest regions for this indicator.

On the other hand, the study also highlights that the debt capacity to acquire a home has improved at one point in the first quarter of 2019 compared to the same period of the previous year.

Likewise, the study incorporates rental profitability indicators, developed by Urban Data Analytics (uDA). Thus, it advances that the average rent yield reaches 7.46% in the first quarter of 2019, compared to the 8.2% increase registered in the same period of 2018.


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