Madrid: tell me where you live and I'll tell you how much salary you spend on rent (February 2019)
Madrid neighbourhoods: tell me where you live and I'll tell you how much salary you spend on rent
Original headline in Spanish: Barrios de Madrid: dime dónde vives y te diré cuánto sueldo destinas al alquiler
By Elena Sanz. Published in El Confidencial on 13 February 2019
Summary from Google Translate:
The article looks into rent levels across different Madrid neighbourhoods, taking into account the percentage of income one spends on rent in different neighbourhoods.
Experts consider that no family should spend more than 30-35% of their income to pay for housing, whether it is rent or purchase. If one spends more than 30-35% of their income on rent, it means that in the face of possible economic adversities - such as the loss of employment - one could be in serious trouble to pay their mortgage or rent.
However, in cities such as Madrid or Barcelona, these percentages are exceeded in most of the neighbourhoods. Although investment funds with apartments for rent do subject their future tenants to a risk control, to avoid that they spend more than 30% of their income on rent, this is not the case with the vast majority of contracts that they are signed daily in Spain.
Madrid's El Plantío neighbourhood registers the highest per capita income in the city (84,779.46 euros), but also one of the highest rents, on average 3,732 euros per month, which eats up almost 53% of the income of those households. In Barcelona's Torre Baró neighbourhood with the lowest per capita income in the city (22,254 euros) and an average rent of 1,300 euros per month, the percentage gets up to 70%.
Keywords: Spain, Madrid, house prices, rent prices, rents, mortgages, neighbourhood
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