From euronews · Cristian Caraballo · · 3m
Housing Costs in Madrid vs Latin America
Madrid's housing costs exceed Latin American cities but remain affordable for low-income workers.
In brief
Madrid's housing costs exceed Latin American cities but remain affordable for low-income workers. Madrid's housing prices are 2.2% higher than last year but still affordable for low-income workers compared to Latin American cities where rents exceed twice minimum wages. Originally reported by euronews.
Housing Price Comparison
For one square metre of housing in Madrid, you can buy almost two in central Mexico City and nearly three in Buenos Aires, Bogotá or São Paulo.
Income Burden on Housing
Renting an 80-square-metre flat in Madrid costs 71% of the average gross salary, while in Buenos Aires it costs 80% of an average worker's income.
Affordability Benchmark
The standard affordability benchmark is spending no more than 30% of income on rent, but Madrid's housing costs exceed this for most workers.
Madrid Housing Prices
Existing homes in Madrid were advertised at an average of €6,471 per square metre in August, 2.2% more than a year earlier.
Rental Costs in Madrid
Rents in Madrid set a record of €23.4 per square metre a month, 4.8% more than a year ago, costing 71% of gross pay for an 80-square-metre home.
Barcelona's Stressed Status
Barcelona has been officially designated a stressed housing area since 2024, with rents falling 0.8% in the year to September.
Latin American Housing Costs
Mexico City costs €3,441 per square metre, followed by Rio de Janeiro (€3,264), Santiago (€2,507), São Paulo (€2,397), Bogotá (€2,329) and Buenos Aires (€2,328).
Rent vs Minimum Wage
In Madrid, an 80-square-metre flat costs about 1.3 times the minimum wage, while in Mexico City it costs 2.3 times the monthly minimum wage.
Housing Crises in Latin America
Mexico City has rising rents despite rent caps, Buenos Aires has deregulated rents, São Paulo faces high rents, Bogotá has rent limits, and Santiago requires 11.4 years to buy a home.
Housing Affordability in Spain
Renting an 80-square-metre home in Barcelona costs 76% of the average gross salary, while in Madrid it costs 72% and in the Balearics 64%.
Informal Housing Crisis
In Latin America, between a fifth and a quarter of the urban population lives in informal settlements, with over 30% in inadequate conditions.
Madrid's Housing Situation
Madrid has no designated stressed housing areas, but housing costs remain high for low-income workers.
The Core Challenge
The gap between housing costs and what people earn makes housing unaffordable even in cities with lower prices.
What Happens Next
Spain's national government approved rental contract extensions and rent increase limits to address housing affordability.
What to remember
Madrid's housing prices are 2.2% higher than last year but still affordable for low-income workers compared to Latin American cities where rents exceed twice minimum wages.
