Costa del Sol's Property Specialists

US Housing is Less Affordable, Will This Happen in Spain?

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Is Housing Less Affordable

A recent study by the famous Harvard University in the United States has been conducted to see if homes are becoming more or less accessible for the general citizen than before. The results indicate that 27% of citizens in the US spend more than half their salary on rent during 2010 compared to 19% who did so in 2000. Across the Atlantic Ocean in Spain similar trends have taken place with the average rents being reduced slightly to compensate for the economic “crisis”, but the salary of the general person has declined on a steeper curve, making homes even more unattainable then in 2000.

Nowadays, many Americans are opting to rent a home before buying a property and the rental market in the US sits are 35% in 2012 against 31% in 2004.

The same trend can be seen all over Spain, with many first time buyers unable to gain approval from local banks or financial institutions to purchase a home, with many under 30s choosing to move back home to reduce their monthly overhead costs.

For the general population in the US and Europe who have completed the property purchase, according to the study, many have had to adjust their budgets by allocating less money to their health and retirement savings.

Lawrence Yun of the National Association of Realtors says “the slow economic recovery, unemployment, lack of new developments and stagnant wages are a bad combination for tenants” which was confirmed by the Harvard University study.

Where to Next

As with everything, there generally is a silver lining and for the cost conscience renter or buyer there are great deals to be found. If you spend enough time in a place, chances are you will know which streets, neighbourhood or zones are best, plus many property owners have also been affected by the economic downturn  - it is just a matter of finding the property. There are many companies offering different services, but remember none of these companies work for the buyer or renter, but instead they work for the owner or seller. Make sure an independent property professional, such as P.S.I. is on your side to ensure you do not pay more then you have too.