In Spain, a decent salary no longer guarantees the ability to buy a home. A fresh analysis by the financial comparison site iAhorro highlights stark regional disparities: while annual pay across the country differs by roughly €10,000, the cost of a standard 90-square-metre flat can vary by as much as €383,000.
The biggest obstacle for prospective buyers is not the monthly mortgage payment but the initial lump sum required. To purchase a 90 m² property, buyers must typically put down around 30% of the price to cover the deposit and associated costs. In the Balearic Islands, that amounts to approximately €144,000, whereas in Extremadura it is just €29,000, and in Castile-La Mancha €30,000.
Price gaps dwarf pay gaps
The divergence in property prices is the main driver. A 90 m² home in the Balearic Islands costs around €480,000, and in Madrid it reaches €431,000. By contrast, the same size property in Extremadura goes for about €97,000, and in Castile-La Mancha around €100,000. Even with a higher salary, the sheer cost of housing in these hotspots can outstrip what a buyer can realistically save.
For those who manage to save 35% of their household income, the analysis shows that in nine regions—Galicia, Navarra, Aragón, La Rioja, Murcia, Asturias, Castile and León, Extremadura, and Castile-La Mancha—a family could accumulate the necessary deposit in under five years. But in the Balearic Islands, Madrid, and the Canary Islands, five years of disciplined saving would still fall short.
For single buyers, the challenge is even more daunting. In the Balearic Islands, a solo saver would need 14.2 years to gather the deposit; in Madrid, 10.7 years; and in the Canary Islands, 10.1 years. These figures underscore how the dream of homeownership is slipping further out of reach for many, particularly in the country's most dynamic economic hubs.
Laura Martínez, head of communications at iAhorro, said in a statement: “The hardest part is managing to save.” Her comment reflects a broader concern that while wages have risen, they have not kept pace with property prices, leaving even well-paid professionals struggling to get a foot on the housing ladder.
The findings come as Spain grapples with a housing affordability crisis that has become a central political issue. The government has introduced measures to boost rental supply and regulate prices, but the structural imbalance between supply and demand remains. In cities like Madrid and Barcelona, the influx of investment and tourism has driven prices upward, while new construction has lagged behind.
This regional divide is not just a matter of personal finance; it has wider implications for labour mobility and economic cohesion. Workers may be reluctant to move to high-productivity areas like Madrid or the Balearic Islands if housing costs eat into their earnings. That, in turn, could hamper the efficient allocation of talent across the country.
For now, the message from iAhorro is clear: earning more is not enough. Without a significant increase in housing supply or a change in financing rules, the gap between wages and home prices is likely to persist, keeping homeownership out of reach for a growing number of Spaniards.
