Palma housing costs reach 48% of household income

Housing costs in the Balearic Islands absorbed 48% of an average household’s net income in the second quarter of 2026, according to figures from property portal idealista released on 18 August. In Palma, Mallorca, renting accounted for 45% of household income, while buying a home required 48%.

Across Spain, renting required 39% of household net income in the quarter, compared with 29% for a purchase. Idealista attributed the high burden to rising prices amid limited housing supply, noting that rental costs exceed the level specialists consider reasonable.

Palma tops rental affordability pressure

For a two-bedroom rental, Palma recorded the highest income share among the cities listed, at 45%. Málaga followed at 40%, Valencia at 39%, and Madrid and Alicante at 38% each.

Specialists put the recommended ceiling for rent at 30% of household income. At provincial level, Málaga had the highest rental burden at 58%, ahead of the Balearic Islands at 48%.

Buying a home also costs most in Palma

Palma also led the ranking for the financial effort required to buy a home, with 48% of household income. Madrid stood at 39%, followed by San Sebastián at 36%, Málaga at 35% and Barcelona at 32%.

The Balearic Islands had the highest provincial purchase burden at 48%, with Málaga next at 45%. Santa Cruz de Tenerife registered 36% and Madrid 35%.

Topics: Housing · Politics · Economy · Palma

Source: Europa Press / Mallorca.com