Over the past five years, homes for sale have become more expensive by 15.6%, while employee compensation has increased by just 5.9%
Wages and prices no longer go hand in hand, but are moving further and further apart, causing a significant loss of purchasing power for workers this year, who have to contend with 8.7% inflation. This imbalance is also being transferred to housing, which is hitting domestic economies hard, as they struggle to cope with home purchases. Similarly, owner-occupied apartments are at the forefront of this escalation rally, having become more expensive by 15.6% in the past five years, while Spaniards’ compensation has only increased by 5.9%. In other words, house prices have risen practically three times as much over the past five years, according to a study published Tuesday, “Relationship of salaries and the purchase of housing in 2021” with data from Fotocasa and Infojobs.
In 2021 alone, the price per square meter became 1.7% more expensive and, on the contrary, wages fell by 2.5% as a result of the pandemic after four years of chain increases, according to this report. More specifically, last year average salary fell in 15 of the 17 autonomous communities, but housing prices rose in 15 communities.
The Canary Islands were the community most affected by the wage decline, with a 6.8% reduction in 2021 compared to the previous year, for which the Canary Islands started receiving 23,082 euros per year in 2021, while the price of homes rose 0.9% to 1,782 euros per square meter (euros/m2). On the contrary, Asturias is the only region where the average salary has increased and the price of housing has fallen, both in 2021 and in the last five years.
On the other hand, La Rioja is the community in which the price of homes for sale has risen the most in the past year: 5.4%, 19.1% since 2016. In the past five years, therefore, the residents of Rioja have not been Start paying 1,245 euros/m2 in 2016 to 1,483 euros/m2 in 2021 for the square meter of a house for sale (that’s 19.1% more). In addition, the average wages of La Rioja have barely increased by 8.3% in five years and even decreased by 3.3% in 2021 (they are from 23,267 euros/year in 2020 to 22,499 euros/year in 2021). gone, so 3.3% less).
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
