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Spain News Today

Spanish news in English

Thursday, October 17, 2024

Rental Market Fuels Economic Inequality

Published: 2024-10-09

A recent study by the Institute of Urban Research of Barcelona (Idra) highlights how renting perpetuates economic inequalities, especially in major cities like Madrid and Barcelona.

The report, "From Owners to Tenants," reveals that most renters in these cities are unlikely to ever purchase a home, with 70% not expecting to inherit property.

This situation is exacerbated by rising rental prices and stagnant wages, which widen the gap between renters and property owners.

The study also notes that the rental market acts as a mechanism transferring wealth from less affluent renters to wealthier landlords.

Recommendations include increasing the supply of regulated long-term rentals and implementing fiscal measures to discourage property accumulation.

The findings underscore the urgent need for policy changes to address housing inequality.