Over Four Million People in Spain Live Below Poverty Threshold Amid Housing Cost Crisis
Spain’s poverty rate remains high with over four million people living on less than 644 euros monthly, driven by rising housing costs and ineffective social policies.
- • Over four million people in Spain live with less than 644 euros per month.
- • 25.8% of the population is at risk of poverty or social exclusion, totaling 12.5 million people.
- • Housing costs have risen sharply, with rents increasing 39.3% over the last decade, exacerbating poverty.
- • Spain has the highest child poverty rate in the EU, affecting 2.3 million children.
- • Experts criticize current social protection policies as ineffective and call for stronger measures to reduce inequality.
Key details
Spain continues to face significant challenges with poverty and social exclusion in 2025 despite a slight improvement in some indicators. A recent report highlighted that 25.8% of the Spanish population—equivalent to 12.5 million people—are at risk of poverty or social exclusion. More specifically, over four million individuals live on less than 644 euros per month, demonstrating persistent economic precarity for a large segment of the population.
This includes a troubling focus on child poverty, with Spain recording the highest rate in the European Union. Approximately 2.3 million children are affected, underscoring a deeply entrenched societal issue. The report also revealed stark regional disparities, with higher poverty concentration in southern regions and tourist hotspots such as the Balearic Islands, Canary Islands, Barcelona, and Madrid. In parts of the Basque Country, Navarra, and Balearics, more than 45% of those at risk live below the 644-euro monthly income mark.
Experts point to rising housing costs as a key driver of this situation. Over the past decade, average monthly rents have surged by 39.3%, far outpacing mortgage increases and pushing affordable housing out of reach for many Spaniards. This trend severely affects those in economically vulnerable groups and is a main contributor to ongoing impoverishment.
Carlos Susías, president of the European Anti-Poverty Network, emphasized the political nature of poverty in Spain, describing it as "a political decision". Susías criticized current social protection policies as ineffective at stemming inequality and called for more robust measures to tackle the root causes, including economic disparity and housing affordability.
On a more positive note, social benefits and pensions have played a key role in preventing approximately 11 million people from falling into poverty in 2024, representing the lowest poverty rate since 2014. While inequality indicators have improved for the third year in a row, experts agree that Spain’s welfare state still requires significant development to better protect its vulnerable populations and address long-standing disparities.
Overall, the data paint a complex picture of incremental progress amid enduring hardship, with housing affordability and social policy efficiency remaining critical challenges for Spain’s fight against poverty and social exclusion in 2025.
This article was synthesized and translated from native language sources to provide English-speaking readers with local perspectives.