According to a recent study by the Savings Banks Foundation (Funcas), buying a house now requires less years of wages than before the crisis, when the equivalent of ten years’ salary were necessary in 2005 to acquire an average home, now the figure is less than eight years. This is based on an average annual salary of 18,034 euros, where a Spaniard would need ten years of wages to buy a house of around 180,000 euros.
Six years later – Funcas’ recent data is from 2011 – and due to falling property prices, the average annual salary was somewhat higher at 21,660 euros, but the economic effort required to buy a home was lower: 7.86 yearly wages to purchase a home with an average price of 170,200 euros.
Madrid registered the biggest drop in that period with locals requiring the equivalent of 12.44 years’ salary in 2005 to buy a home, while last year they only needed 8.65 years’ wages, almost four points, or years less.
The Canary Islands also recorded one of the biggest drops in the amount needed to buy a home, from 10.48 years’ wages required in 2005 to 7.69 a year ago, while at the opposite end stood Extremadura, where there was little variation, a decrease of 0.18 points.