The essential formula of home economics "income minus expenses" is not valid for a large part of the population. Not only for those who have no income, but also for those who work (2.5 million workers are poor). Despite the fact that in Spain incomes have improved by 12% since 2008, household expenses have increased by 30%, especially due to the price of housing (whether rents or mortgages), electricity, gas and food . This means that three million families are below the extreme poverty line once they have paid for housing and basic supplies.
In an attempt to find economic and sustainable solutions, more and more families are forced to resort to formulas such as subletting rooms. In just five years, the percentage of families that rent part of their home has experienced a noticeable increase, reaching 6.6% in 2022 (more than 1.2 million households).
There is also a noticeable increase in the number of families living in unsafe housing, reaching 23.2% in 2021, implying that more than 4.2 million families live in shared flats without contract in force or in a situation of eviction.
At the same time, the number of families living in inadequate housing, those that do not meet the minimum decent conditions for everyday life, has also experienced a worrying increase, having gone from 25% in 2018 to 30 % in 2021 (5.6 million families).
This is indicated by the Income and Expenditure Report: an equation that conditions our quality of life, from Cáritas, presented yesterday by Natalia Peiro, general secretary of Cáritas Spain, and Daniel Rodríguez, member of the study team of the Foessa Foundation, who urge society as a whole to find a solution to this serious problem, which, far from diminishing, is increasing year after year.
In the income chapter, the improvement of the labor market, with more employment, more job stability (more fixed contracts), the increase in the minimum wage and, for those with fewer resources, the establishment of a minimum income they have been of great help in the face of the enormous increase in expenses.
In addition, Caritas warns that this 12% increase in income is not the same for everyone: for those who earn more, it has meant an average increase of 600 euros per month, and for those who earn less, just four euros.
The big problem, however, clearly comes from the expenses. "After allocating a significant part of the income to pay for housing and basic supplies (water and energy), many families face a discouraging picture: the money left in their pockets is below the threshold of extreme poverty", says the report.
"This phenomenon is particularly worrying when comparing 2018 and 2021," the report notes. "In 2018, this reality affected 9.9% of households, 1.8 million families who struggled to maintain an economic balance that allowed them to face not only housing costs, but also other basic needs. The most alarming thing is that this situation has worsened over the years. In 2021, a worrying 16.8% of households, which is equivalent to more than three million families, will experience this reality", points out Rodríguez.
Housing is presented as the determining factor that unbalances the “income minus expenses” equation. According to the latest data from the National Institute of Statistics' living conditions survey (2022), the number of families who could not keep their home at an adequate temperature increased by 189% compared to 2008. Specifically, expenditure on electricity increased by 82%, and liquid fuels for the supply of heating, by 180%.
"This situation results in a constant precarious balance between guaranteeing the payment of the monthly housing payment and supplies on the first days of the month, in exchange for falling below the extreme poverty line and, as a result, neglecting other fundamental needs of the home", explains Daniel Rodríguez.
The effort a family must make to acquire a roof to live in is also on the rise. Today it takes 7.7 years of annual gross income to buy a home versus the 2.9 years it took in 1987.
Buying a home is not the only cause of tension. Half of the families who own a rental house also suffer from financial stress. This means that the rent payment is more than 60% of the income.
