Spain's Shift from a Homeowner Society to a Generation of Renters

• Spain's housing market has transitioned from a home-ownership model to one dominated by renting, deepening wealth inequality.
• Young adults are increasingly excluded from wealth accumulation due to high housing costs and a lack of initial capital.
• The combination of stagnant wages and skyrocketing property prices has created a structural barrier to entry for the younger generation.

The Transformation of the Housing Market

• Since 2008, the share of homeowner households has dropped from eight out of ten to just over six.
• Meanwhile, the proportion of renters has risen from 12% to over 19%, while the number of large-scale landlords (owning more than ten properties) has quadrupled.
• Despite the addition of two million new housing units over the last two decades, access to ownership has not improved for the average citizen.

Generational Wealth Gap

• Seven out of ten adults under 34 continue to live with their parents, primarily due to the prohibitive cost of housing.
• The share of total net national wealth held by young people has fallen to 2.1%, whereas the share held by those over 75 has increased to 18.3%.
• The reliance on real estate as the primary store of wealth has created a significant divide between those who entered the market under favorable conditions and those currently trapped in a cycle of high rent and low saving capacity.

Economic Implications

• According to UGT reports, housing prices have risen by over 77% since 2015.
• Buying a home now requires dedicating 40% of one's salary for 52 years, alongside a massive upfront deposit that many cannot afford without family support.
• The current model fosters a dual structure where property ownership is increasingly concentrated in the hands of the already wealthy, leaving the younger generation unable to build long-term financial stability.