Housing Costs Push Nearly Three Million Spanish Workers Below Poverty Line
High market rents push 770,000 working people in Spain below the poverty line, raising the total number of working poor to nearly three million, according to a report published by Oxfam Intermón. The study, authored by the organization’s housing, employment, and social policies lead Alejandro García-Gil, relies on the 2025 Living Conditions Survey from the National Statistics Institute (INE) using 2024 income data.
Before factoring in housing expenses, 11.48 percent of employed people—roughly 2.2 million workers—were in working poverty in 2024. Once rent, mortgages, and property taxes are subtracted from household earnings to reflect true economic capacity, that rate jumps four percentage points to 15.49 percent.
Market Rents Drive Deepest Hardship
The burden falls heaviest on residential tenants paying market rates. For this group, the working poverty rate climbs from 19.35 percent before paying rent to 34.08 percent after settling housing costs, representing a 76 percent relative increase, Oxfam Intermón estimates. By comparison, the post-expense poverty rate drops to 10.22 percent for homeowners paying mortgages and 7.95 percent for those who own their homes outright.
Households with young children face the most acute distress. Working poverty approaches 40 percent in homes with three or more children and hits 29.6 percent in single-parent households after covering housing costs.
Regional Disparities Across Autonomous Communities
Madrid experienced the sharpest increase when factoring in housing expenses, climbing from 7.29 percent to 12.73 percent—a jump of 5.44 points. Catalonia followed, moving from 7.90 percent to 12.86 percent, while Murcia shifted from 15.37 percent to 20.23 percent. Andalusia recorded the highest overall post-housing rate in the country at 20.98 percent, up from 17.65 percent.
The report notes that working poverty barely moved between 2022 and 2024, shifting only from 11.64 percent to 11.48 percent despite GDP growth exceeding six percent over that period. This stagnation demonstrates that broader economic expansion fails to automatically benefit the country’s most vulnerable earners.
National Rental Costs Reach Historic Highs
The findings arrive amid widespread social mobilizations over housing costs across the country. The national average rent hit a historic high of 15.1 euros per square meter in May 2026, with Madrid reaching 23.4 euros per square meter.
The Spanish government responded to recent protests by approving two decree-laws, which Oxfam Intermón characterizes as a partial step forward. One decree took effect on October 1, while the second awaits publication in the Official State Gazette and parliamentary validation.
For Cubans—a community of roughly 287,490 registered residents at the start of 2026—and other foreign nationals living in Spain, the data mirrors broader immigrant vulnerabilities. More than 68 percent of non-EU residents live in rented housing, compared to 13.1 percent of Spanish citizens, and Latin American workers earn at least 31 percent less on average than their Spanish counterparts.
Frequently Asked Questions About Housing Poverty in Spain
How does the Oxfam Intermón methodology calculate working poverty?
Researchers subtract rent, mortgage payments, and property taxes directly from individual household incomes using data from the INE Living Conditions Survey. They then recalculate the median to measure actual economic capacity after essential residential expenses.
What legislative measures has the Spanish government enacted?
The government approved two decree-laws targeting the rental market following widespread public protests. One decree became active on October 1, while the second requires formal publication in the Official State Gazette and approval by parliament.
How do rental costs for foreign residents compare to native citizens?
More than 68 percent of non-EU residents in Spain rent their homes, compared to 13.1 percent of Spanish citizens. Latin American workers also earn an average of at least 31 percent less than domestic workers.
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