Balearic homes cost 15 years’ income as prices rise

In Spain’s Balearic Islands, a 100-square-metre flat costs 15 times the average annual income: home prices are pulling away from what people earn. The finding comes from a study presented on Friday, 13 November, by Luis Álvarez, Bartomeu Coll and José María Vicens for the Cercle d’Economia. They examined 82 official indicators over 21 years across Spain’s 17 autonomous communities.

Home prices outpace incomes

The Balearic Islands have Spain’s highest home purchase prices. Prices have risen without a break since 2015 and now stand 46% above the level the researchers’ model would expect from income and population growth.

Average income is €21,000, the lowest among a group that also includes Madrid, Navarra, the Basque Country and Catalonia. Real economic output per person has grown by just 0.7% since 2000, against 19% in the rest of Spain.

Strong employment, weaker education

The islands lead on employment and how people rate their own health, but rank 11th for life expectancy. Education is another weak point: 18% leave school early, the second-highest rate in Spain, while the share of 25- to 64-year-olds with higher education is the fourth-lowest.

The study links higher education and unemployment to 87% of the income differences between Spain’s autonomous communities. That leaves the islands’ housing gap alongside a longer-running challenge over earnings.

Topics: Housing · Education · Sa Pobla

Source: Europa Press / Mallorca.com