Quarter of Household Budget Spent on Mortgage or Rent Payments

European, UnionSpanish households spend 24% of their annual family budget on paying their mortgage or home rental fees, according to a report prepared by property portal, pisos.com, based on data from the National Statistics Institute’s latest Household Budget Survey.

Specifically, rental payments require 26.18% of the family budget, while mortgage payments take an average of 21.69%.

If every household has, on average, 27,038 euros available income per year, then rental tenants would have to pay an average of 7,077 euros a year, or 590 euros a month, on rental payments.

Homeowners, however, only have to allocate 5,865 euros annually (489 euros per month) to pay their mortgage, allowing them to save 101 euros per month and 1,212 euros per year.

However, Miguel Angel Alemany from pisos.com stressed that renting a home may seem more expensive at first because the monthly payments will often include hidden expenses such as community fees, maintenance, and even certain taxes, while the mortgage payments are paid separately from these other expenses, and if these were added together then this would bring the monthly amount payable to a level very similar to the rental figure.

Analysing the data by region, the regions where the greatest percentages of the family budget are spent on paying the mortgage or rent are: the Basque Country (34.3%); Madrid (30.71%); the Balearic Islands (29.04%); Andalucía (25.01%); Catalonia (24.74%); Valencia (24.26%); Cantabria (24.23%); Asturias (24%) and the Canary Islands (23.94%), all of which are above the national average (23.93%).

In contrast, El Economista reported that the regions with levels below the national average are: La Rioja (23.46%); Galicia (22.85%); Castilla y León (21.70%); Murcia (20.24%); Aragón (20.13%); Extremadura (20.09%); Navarra (19.37%) and Castilla-La Mancha (18.37%).