Property Abroad
Blog
Decrease in the number of households created by young people under 35 in Spain over ten years.

Decrease in the number of households created by young people under 35 in Spain over ten years.

Decrease in the number of households created by young people under 35 in Spain over ten years.

The Active Population Survey (EPA) for the third quarter returned the youth unemployment rate to 2008 levels, exactly when the last financial crisis began. It took more than a decade for unemployment among those under the age of 25 to reach 27.8%, still twice the average statistic for the eurozone or the European Union. During this time, marked by cutbacks and economic fluctuations, those who were able to enter the labor market for the first time did so under the worst conditions.

The Youth Council calculates the loss of purchasing power of this group in the last 15 years about 21%, and this instability is one of the reasons for the sharp decline in the proportion of young families, where the head of the family is under 35 years old, in Spain.

According to the study Home Finance 2000-2022. The generation gap is widening, the share of these young families fell by nearly eight percentage points during that time, from 14.7% to 6.7%. It has shrunk more intensely than those in the 35 to 44 age group, who have seen it fall from 21.9% to 19.5%. The authors of the report, published by the Afi Emilio Ontiveros Foundation, attribute the decline in the formation of the first generation of families to both demographic reasons and the great difficulties in the independent life of young people.

The national level situation is very different from that of other major economies in our region. In Spain, the share of households where the head of the family is between 16 and 34 years of age is only 7.4% of the total, compared to 17.8% in Germany and 16.3% in France. The transformation of labor employment in a period marked by four major crises (financial, debt, pandemic and inflation and energy) has pushed many young people out of the housing market.

The level of young people with their own homes has fallen sharply

The latest INE Living Conditions Survey showed a significant increase last year in the number of young families who resorted to housing transfer - the free use of a home - either by a relative or by some institution.

Recommended real estate
Buy in Spain for 288000€

Sale flat in Alicante with sea view 310 994 $

2 Bedrooms

2 Bathrooms

98 м²

Buy in Spain for 346000€

Sale flat in Alicante with city view 373 625 $

2 Bedrooms

2 Bathrooms

105 м²

Buy in France for 346000€

Sale flat in Saint-Denis 373 625 $

3 Bedrooms

2 Bathrooms

109 м²

Buy in Spain for 120000€

Sale flat in Costa Blanca 129 581 $

1 Bedroom

1 Bathroom

61 м²

Buy in Spain for 33000€

Sale house in Langreo 35 634 $

1 Bedroom

1 Bathroom

40 м²

Buy in France for 79500€

Sale flat in Saint-Aubin-les-Elbeuf with city view 85 847 $

2 Bedrooms

1 Bathroom

68 м²

They already account for 16% of the total. The same statistics indicate that more than half of the households where the person who is a full-time employee is under 30 years of age are renting (53.4%), almost one percent more than the previous year.

Worse initial conditions prevent young people from saving through real estate, as previous generations did. Thus, while in 2000 the share of young people with their own housing was about 70%, twenty years later this figure does not reach even half and has fallen to 30.7%.

Being able to make a choice has become almost a luxury in a context where rental prices are steadily rising, and doing so at a faster rate than wages. While the average income of a young person rose by 4.6% in 2022 to €13,079.19 net per year, the cost of renting the average has increased by 7.55%, say the Union Union of Workers (USO).

The somewhat preferential work, temporary contracts, and the numerous demands that the labor market places on young people, together with high housing costs, become a burden for this group and make it difficult for them to pursue their personal project.

Young people in Spain become independent from their parents 4 years later than in the EU

Latest data published by Eurostat show that last year Spanish young people left their parents' home at an average age of 30.3 years, while in the European Union they did so at an average age of 26.4 years and in countries such as Finland or Sweden the average age drops to 21.3 and 21.4 years respectively. Over the last decade, the average age of young people leaving their parents' home to live on their own has increased in fourteen EU countries, with Croatia (+1.8 years), Greece (+1.7)... and in Spain (+1.6).

"This generation of people aged 20 to 35 has an unfortunate factor; they are entering the job market at the worst time in decades in terms of instability, flexibility, and rental costs, considering four crises," said Daniel Manzano, the author of the study published by AFI, during a presentation held this week.

The difficulties with employment and access to housing are compounded by the fact that Spain is worsening in yet another social welfare indicator developed by the European Commission, which concerns this group: the percentage of early school leavers increased last year to 13.9%, compared to the EU average of 9.6%. This does not hide a much more stubborn reality, which, as stated by the Youth Council, also indicates that higher education does not guarantee independence. Only 22.9% of young people with higher education or higher vocational training were able to achieve this in the last year.

Comment