Insane! - 68% of Rentals in Spain Exceed the Recommended Spending Limit for Middle-Income Families

For a middle-income family, housing costs should ideally be no more than 30% of their income. Based on this guideline, a family should pay a maximum of €764 per month for a two-bedroom apartment. However, according to idealista/data (Feb 2025), most rentals in Spain are far more expensive.

The Big Picture

• 68% of two-bedroom apartments across Spain cost more than what is considered affordable.
• In the last quarter of 2024, the median rent for these apartments was €981/month, which is well above the affordable limit.

Spotlight on Palma and the Balearic Islands

• In Palma, only 8% of two-bedroom apartments are within the affordable range.
• The affordable rent in Palma is calculated at around €950/month, yet the market price soars to about €1,539/month.

Our Personal Note:
In our experience in Mallorca, it’s very rare to find anything decent for under €1,000. And that’s usually for very basic, tiny apartments. If you want an apartment with a balcony and more than 50 sqm of space, you’re easily looking at prices starting from €1,200/month (cold).

What “Affordable Rent” Means

Experts advise that a family should not spend more than 30% of its income on rent. Using income data from Spain’s National Institute of Statistics (INE), idealista/data has calculated the maximum affordable rent for each city. For instance:

• San Sebastián tops the list with an affordable rent of €1,118/month.
• Madrid, Barcelona, and Melilla follow closely with limits just above €1,000/month.
• In contrast, smaller cities like Zamora have affordable limits around €744/month.

Market Prices vs. Affordable Rents

In many Spanish cities, the market rent far exceeds what is deemed affordable:

• Barcelona: The market rent is €1,796/month, which is €760 more than the affordable limit.
• Madrid: The market rent is €1,601/month, €502 above the affordable rate.
• Palma: As highlighted, the market rent is nearly €589 higher than the calculated affordable price.

This huge gap means that many families are spending a much larger share of their income on rent than is recommended.

The Rental Burden on Families

The difference between what families can afford and the actual market prices leads to a high rental burden: - In Barcelona, families may end up spending about 49% of their income on rent. - In Palma, it’s around 45%. - While smaller cities like Ciudad Real see much lower burdens (only 16% of income), larger markets and popular destinations like Palma and the Balearic Islands remain challenging.

Source: idealista/data

A Call for Government Action

In summary, the rental market in high-demand areas like Palma and the Balearic Islands is extremely challenging. Both families and single individuals in Mallorca struggle not only to find available apartments but also to afford them. Many end up spending nearly half of their salary just on rent. Basic apartments rarely fall below €1,000 per month, and if you want extra space or a balcony, prices typically start at around €1,200 per month.

This is a tough situation that urgently calls for government intervention. There is a clear need to invest in more affordable housing and support projects that help lower the financial burden on residents.