Date: 11 Dec 2024
The demand for housing in Spain has undergone significant changes in recent years, driven by economic, social and demographic factors. The most notable change is the growing role of those over 50 in the real estate market, overtaking buyers between 30 and 39 years old, who used to lead this category.
“Between 2018 and 2024 we have witnessed significant transformations in the profile of the home buyer in Spain. The group leading the demand has changed significantly,” according to the III Housing Observatory in Spain, prepared by Century 21 Spain. In 2018, people between 30 and 39 years old accounted for 40% of the active demand for housing. However, in 2024, this proportion has fallen to 29%, while those over 50 have increased their share from 10% to 31%.
Factors that explain this generational change
Job insecurity and low income are the main factors that limit access to housing for thirty-somethings, who face difficulties in saving and accessing mortgages. At the same time, those over 50 years of age tend to have a more stable financial situation and in many cases have homes already paid for or almost paid off, which allows them to finance new purchases. “Young people face historically high housing prices and few options that fit their budget, while those over 50 years of age have the stability to move in this market,” says Ricardo Sousa, CEO of Century 21 Spain.
The study also reveals that only one in seven young people between 18 and 29 years of age is currently looking to buy or rent a home, compared to one in three in 2018. The reasons include high prices, which discourage 50% of this group, and the lack of options that meet their expectations, which affects 23%. In addition, the most sought-after price ranges have also changed: in 2018, 28% were looking for homes between 100,000 and 150,000 euros, while in 2024 this figure has fallen to 20%.
Other changes in the buyer profile
Although women continue to represent the majority of buyers, their share has decreased from 64% in 2018 to 54% in 2024. On the other hand, married or cohabiting applicants continue to dominate the market, representing 60% of the total, and two-person families maintain their weight at 38%.
Mortgage trends
The report also highlights that Spaniards are willing to take on higher mortgage payments in 2024 than in 2018, despite the fact that the percentage of those applying for loans has decreased (24.9% in 2018 compared to 18.4% in 2024). Although fewer buyers are willing to pay monthly instalments of up to 500 euros, the percentage of those who accept payments of between 501 and 800 euros has increased.
The financing model has also evolved: although paying part in cash and financing the rest remains the most popular option (45%), the proportion of those who finance their purchases by selling a previous property has grown, from 13% in 2018 to 19% in 2024.
The gap between dream and real estate reality
The III Housing Observatory highlights the difference between the “ideal home” and the “real home” that buyers end up acquiring. Although most Spaniards prefer single-family homes with large spaces, the market and high prices force many to opt for apartments in buildings, which represent 68% of transactions in 2024. However, the demand for single-family homes has grown by 9%, with elements such as terraces and garages being the most valued (74% and 72%, respectively), although not always available in the current offer.