Andalusia’s High Rental Effort
Andalusia, a region in Spain, is known for its high rental effort. Four out of the top ten towns and cities with the highest household effort to rent a home are located in this region. This information is based on a study conducted by idealista. The study took into account the average household income and the cost of housing to determine the effort required by a household to secure a rental property.
Spanish Towns with the Highest Rental Effort
Benahavís, a town in Málaga, is the Spanish town where local households face the greatest effort to access rental housing. Here, 90% of the average household income is required for rent. Following Benahavís are Santa Eulalia del Río in Ibiza (74%) and the Málaga towns of Marbella and Estepona (72% each). Similar rates are recorded in Finestrat in Alicante and Calvià in the Balearic Islands (71% each). Other towns with high rental effort include Arona and Adeje in the Canary Islands, Benidorm in Alicante, and Casares in Málaga.
Towns with the Least Rental Effort
On the other hand, the towns or cities requiring the least effort to rent a home are spread across five autonomous communities, primarily located inland. The cities of Ciudad Real and Baeza in Jaén have the lowest ratio between rental costs and household income, with only 16% of household income needed to cover rent. Other towns with low rental effort include Linares in Córdoba, Puertollano in Ciudad Real, Benicarló in Castellón, and Jaén.
Disparities in Rental Effort Across Autonomous Communities
The study also reveals significant disparities in rental effort across different autonomous communities. For instance, the most demanding market in Andalusia (Benahavís) requires almost 70 percentage points more household income than the most demanding market in Extremadura (Badajoz, at 19%). However, the differences among the least demanding markets are smaller. The least demanding market in the Balearic Islands (Llucmajor) requires 46% of household income, while Andalusia and Castile-La Mancha have the lowest rates, with Baeza and Ciudad Real both at 16%.
Methodology of the Study
The effort rate reflects the proportion of a household’s purchasing power spent on housing. Specifically, for rental properties, idealista/data calculates the effort rate as the annual percentage of the average net household income required to pay the rent for a typical two-bedroom home. Rental values are sourced directly from idealista’s database, which provides prices for each town and city, while net household income data is derived from the National Institute of Statistics (INE). The data was compiled and analysed by idealista/data, idealista’s proptech, which provides information for a professional audience to facilitate strategic decision-making in Spain, Italy and Portugal.
