MADRID: The Spanish government will pay 250 euros ($284) a month to low-income young people to help them cut the cord in a country where more and more young adults are living with their parents because they cannot afford to to rent.
Housing Minister Raquel Sanchez told a press conference after Tuesday’s weekly Cabinet meeting that from this month Spaniards under 35 and with an annual income below 24,318 euros can apply for the monthly subsidy to rent an apartment for two years.
The subsidy “is an important element for housing (prices) to stop being such an obstacle to the emancipation of young people”, she said.
Spain has one of the highest proportions of young people living with their parents in Europe, up to 55% of 25-29 year olds in 2020, according to the latest official data, up 6.5 percentage points since 2013.
This figure is strongly correlated with endemic youth unemployment in Spain, where 29% of under-25s register as unemployed.
However, direct subsidies to pay rents could be less effective than the government hopes, as increased demand for smaller apartments is likely to drive up prices, said Francisco Inareta, spokesperson for Idealista, the largest website country real estate.
“Previous experiences have shown that the main consequence is a direct price increase,” he said, adding that tenants earning just above the advertised limit would likely feel discriminated against for having to pay more without receive grants.
(1 USD = 0.8790 euros)
(Reporting by Inti Landauro and Emma Pinedo; editing by Jonathan Oatis)