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Plan in Spain for young people to leave their parents' home, but how much does it cost to rent a house there

Plan in Spain for young people to leave their parents' home, but how much

The Spanish government is planning to offer young people 250 euros a month to stimulate them to leave their parents' house and rent. Spanish President Pedro Sanchez announced the proposal last Tuesday, considering it part of the government's budget plan for next year 2022.

According to this plan, people aged 18 to 35, who earn less than 23 thousand 725 euros per year, will be entitled to the rent bonus, of course if the budget proposal is approved by Parliament.

In addition, the most vulnerable families may be offered additional subsidies covering up to 40% of their rent, according to the government announcement. Prime Minister Sanchez said:

"We are talking about a fair economic recovery and that means facilitating access to housing, especially for those who are most vulnerable to insecurity, such as our young people."

Eurostat data from 2020 showed that young people in Spain left their parents' home on average around 30 years old, four years later than the typical age for the entire European Union.

A report by the American bank Brookings, published in April, stated that a "strong bias towards home ownership policy" in Spain meant that less than one in four of the country's households rented their homes.

However, the report noted that there had been a gradual increase in demand for rent, as job insecurity and low wages prevented young people from buying homes, as well as more caution from banks in offering mortgages.

According to data published by Eurostat, a one-bedroom apartment in the Spanish capital Madrid cost about 1,000 euros per month to rent in 2020. Other data showed that last year, a single person without children in Spain it earns around 21,241 euros, slightly below the EU average of 24,005 euros.

* CNBC article, translated and adapted into Albanian by Tiranapost.al