HOW MANY YEARS OF SALARY DO WE SPEND ON HOUSING

The Real Estate Trends Report for October assesses, in each autonomous region, the price of new and old houses andfrom years of salaries needed to acquire them.

• What is the price of an average house?

The average price of housing has increased by 3.5% in a year and three months and by 1.9% in the first half of 2017.

 Larger cities are still the engine of price recovery, but this increase has not been homogenous. In Barcelona the average value rose 7.8%, in the Balearic Islands 5.8% and in Madrid 5.4%, while in Teruel it dropped to -2%, in Álava -1.3% and Zamora -0.5%.

 The average price of housing in Spain is € 1,497 / m² but it also varies widely from one city to another. While Guipúzcoa (€ 2,338 / m²) and Barcelona (€ 2,280 / m2) have the highest average prices, the lowest prices can be found in Badajoz (€ 841 / m²) and Ciudad Real (€ 851 / m²).

 These data reaffirm the recovery of the real estate market started in 2015 with percentages of increase in the last semester very similar to those of the previous six months.

 • How many years of average salary do we need to purchase a property?

 The number of years of salary that an average citizen would need to allocate for the purchase of an average household is calculated by dividing the market value of the average household in each area by the average annual gross income published by the INE. The result is called Effort Index and varies according to the Autonomous Community.

 Baleares Islands is where it takes longer to acquire a property according to the average salary, 15.2 years, then Catalonia, 8.4 years, and Madrid, 8.1 years.

 

Translated from:

https://blog.bankinter.com/economia/-/noticia/2017/10/17/adquirir-vivienda-anos-sueldo#

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