Rising Housing Costs and Job Insecurity Drive Spain's Middle Class to Shrink
Spain's middle class faces growing economic hardship as rising rent prices and widespread job insecurity lead to increased social exclusion.
- • Spanish middle class is shrinking due to rising property prices and job insecurity.
- • 4.3 million people in Spain live in severe social exclusion, a 52% rise since 2007.
- • 45% of renters are at risk of poverty with average rents rising 10.9% in a year.
- • Job insecurity affects 47.5% of the active population, impacting 11.5 million workers.
Key details
A recent report by Cáritas Española, detailed in the 9th FOESSA Report, reveals that Spain's middle class is shrinking amid escalating housing prices and widespread job insecurity. The study shows that 4.3 million Spaniards are now living in severe social exclusion—a 52% increase since 2007—highlighting growing economic precariousness despite Spain's post-pandemic economic growth.
According to the report coordinator Raúl Flores, economic expansion has not translated into poverty alleviation or reduced social exclusion. He emphasized, "Renting has become a poverty trap," stressing how 45% of Spain's rental population faces risk of poverty or social exclusion, the highest rate in the European Union. Average rent prices surged by 10.9% in the last year, with 37% of rentals costing over €1,500 per month, making affordable housing increasingly elusive for many Spaniards.
Job security also continues to deteriorate, with 47.5% of the active workforce—approximately 11.5 million people—experiencing job instability. This insecurity means that having employment no longer guarantees a middle-class lifestyle; two-thirds of households facing moderate exclusion still have at least one working member. The findings illustrate the complex economic pressures straining Spain’s society, where growth metrics mask persistent inequality and fragile living conditions for the majority.
This article was synthesized and translated from native language sources to provide English-speaking readers with local perspectives.