Owning a Home in Spain: Insights for Foreign Buyers

Thinking about owning a home in Spain, moving with your family, or planning a long retirement on the Costa del Sol? One of the first things many foreigners notice is how prevalent homeownership is among Spanish households, even when salaries seem modest. The latest Encuesta Financiera de las Familias (EFF) from the Banco de España provides a clear, data-driven picture of how homeownership is evolving in the country.

Is Owning a Home in Spain Still the Norm?

According to the EFF, 70.6% of households own their main residence, a slight decrease from 72.1% in the 2022 edition. This decline is notable, especially when compared to 89.4% of households owning some form of real asset back in 2011. While this homeownership rate remains high, particularly for foreign buyers accustomed to rental-heavy cities, the downward trend raises questions about the future of homeownership in Spain.

Who Owns Their Home – and Who Is Being Squeezed?

Homeownership Rises Sharply with Age

Homeownership in Spain exhibits a strong correlation with age. The older the household, the more likely it is to own the home it resides in:

• Among households where the main respondent is 65 or over, more than 80% own their main residence.
• In the group over 74, the ownership rate is 83.4%.

Many older Spaniards purchased homes years ago, often when prices were lower relative to incomes and credit was more accessible. For younger foreign households, this can be striking: Spanish retirees are often “house-rich” in a way that many pensioners elsewhere are not.

The Middle-Aged Squeeze

The most noticeable declines in homeownership between 2022 and 2024 are not at the bottom or very top of the income spectrum but among mid-career and upper-middle-income households. Homeownership fell by 5.9 percentage points among households in the 80–90% income bracket. This indicates that many households in their late 30s and early 40s—typically the prime home-buying age—are now less likely to own than they were just two years ago.

Young Buyers Are Back: Under-35s Buck the Trend

Amid the general trend of falling ownership, one finding stands out: the youngest households are actually more likely to own than they were in 2022. The homeownership rate among households headed by someone under 35 rose by 4.8 percentage points between 2022 and 2024, marking the first increase for this group since 2011. This suggests that, despite higher prices and tighter lending conditions, more young households have managed to buy a home, possibly with family support, smaller properties, or homes in more affordable locations.

What Are Spanish Homes Actually Worth?

The EFF asks homeowners to report the value of their main residence, adjusting the answers to 2024 euros. Among households that own their main home, the survey finds the median value of the main residence is €170,000. Prices in parts of Madrid, Barcelona, or popular stretches of the Costa Brava and Costa del Sol can be significantly higher. However, many affordable areas exist, especially inland or in smaller coastal towns, where property values are lower than this national median.

Mortgages in Spain: How Many Households Still Owe Money?

How Common Is Mortgage Borrowing?

A distinctive feature of the Spanish housing market is that many owner-occupiers no longer carry mortgage debt on their main residence. 25% of all households have debt linked to the purchase of their main residence. Almost two-thirds of owner-occupiers live in homes that are owned outright, at least concerning the main mortgage on that property.

Typical Mortgage Balances

For those who still have a mortgage on their main residence, the survey provides a clear picture of the typical balance outstanding. Among households with main-home mortgage debt, the median outstanding amount is €60,900.

What This Means If You’re Thinking of Buying a Home in Spain

Putting the EFF 2024 data together, several broad messages emerge for anyone considering a move to Spain or a more permanent step into the housing market. Understanding these patterns can help you decide whether buying a house in Spain is the right choice for you:

• Owning is Still the Default: Around seven in ten households own their main residence, with ownership rates particularly high among older Spaniards.
• Mid-Career Households Are Under Pressure: The sharpest recent falls in ownership are among 35–44-year-olds, who are well-paid but not top-income households.
• Young Buyers Are Re-Emerging: Homeownership among those under 35 has increased for the first time since 2011.
• Mortgages Tend to Be Modest: Only a quarter of all households—just over a third of owners—have a mortgage on their main home.

If you are moving to Spain with a foreign salary, remote work, or a pension, your situation may differ from local households captured in the survey. Your income and savings might be in another currency, and exchange rates can directly affect what you actually pay. This is why idealista has launched a dedicated currency exchange service to offer competitive rates when transferring funds for a property purchase.

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