The rental prices of a home continue to rise without showing signs of hitting bottom. The Average rent of the lease stood at 859 euros per month, which represents an increase of 2.26% compared to August and an interannual rebound of 16.08%, according to data from the quarterly rental price report for pisos.com published this week. The high prices of this service complicate access to housing as the average price "eats" more than 52% of the average Spanish salary, located at 1,639 euros, according to data from the National Institute of Statistics (INE) collected by Adecco. "The demand that at the time of the boom was directed mainly to the purchase now has been channeled fundamentally towards the rent. To this greater 'conventional' long-term demand – to rent for a living – has been added the growing short-stay or tourist rental market in specific areas of large cities and coastal enclaves, "says Pedro Soria, commercial director of Tinsa Sociedad de appraisal.
The data confirm that the phenomenon of expensive leases occurs especially in large cities. By province capitals, Madrid was the most expensive with an average income of 1,758 euros per month. They were followed by Barcelona (1,749 euros) and San Sebastián (1,513 euros). For its part, Teruel was the cheapest, with 385 euros of average monthly income. Other economic capitals were Ciudad Real (402 euros) and Cáceres (413 euros).
This impasse in which, above all, young people are especially notable in the city of Madrid, where the population of 25 to 35 years is "in a kind of limbo" because "wages entering the market are lower than before the crisis and high rental and purchase prices are unfeasible for them ». This is how the territorial director of Neinor Homes, Ignacio Llona, interprets this situation. In addition, the price of houses is pushed upward in the capital of Spain by the shortage of land. "The soil machine stopped years ago and there is no land available to meet the demand for purchase. In Madrid there are few bags of land, a middle class family in Madrid can only buy housing at reasonable prices in newly constructed neighborhoods such as El Cañaveral. Outside of that there is nothing, "says Llona.
In some cases, the high monthly payments that are claimed for leasing a home are leading to an increase in the sale. "It seems that the increase in rent is causing the cost of rents to be equated with that of a mortgage quota and whoever tries to buy as much as possible. But this transfer can only take place in solvent profiles, which have previous savings and have, therefore, the possibility of obtaining a mortgage, "Soria clarifies.
Increase in evictions
The mismatch between wage income and rent paid by tenants has led to an increase in evictions due to non-payment of leased properties. In the second quarter of the year, the CGPJ counted 10,491 launches for non-payment of rent, 61.2% of the total releases of the quarter. In a press release, the Platform for People Affected by Mortgages (PAH), has demanded that the government adopt specific measures that "puncture the rental bubble", such as the socimis pay corporation tax, and that the large holders of housing, "Vulture, socimis, banking and large real estate funds are tax penalized for each house they keep unjustifiably unoccupied, speculatively inflating the rental bubble and the purchase prices." "Unfortunately, the facts do not tire of giving us reason in regard to the housing emergency situation that this country suffers," said the PAH spokeswoman, Lucia Delgado.
Despite the unstoppable growth of prices, the commercial director of Tinsa avoids talking about a real estate bubble in the leasing sector. "More than a bubble, we are experiencing a situation of supply shortages, in which prices are rising to levels that are already clashing with the access capacity of average demand. The way to tackle this problem is to increase the supply and encourage the owners to put on the market houses that are currently empty. And we are not just talking about housing held by financial entities or Sareb; the bulk of the market is in the hands of individuals ».
The other experts consulted do not think it is correct to speak of "bubble" because "it is not an asset that is financed as it happens with the sale, which can be speculated," says the director of flats studies, Ferran Font. However, it does believe that the authorities should intervene to "soften the pressure of the rental market" by creating "social housing stock exchanges and generating land for finalization so that new residential development can be built or taking measures that encourage the exit to empty housing market ».
«Experience shows us that when the Administration undertakes coercive interventions they rarely give good results. The containment, even lowered, of the rental prices must go through an increase in the housing stock in lease. It is necessary to consider that an important part of unoccupied dwellings is because of the legal insecurity that the current legislation provokes among the owners and that an improvement of the guarantees would probably mobilize a significant amount of these empty dwellings towards the rental market ", indicates César Hernández, director of Market Analysis of the Appraisal Society, Market Analysis of the Appraisal Society.