Spain's Poverty Rate Hits 23.5% After Housing Costs
One in four Spanish tenants falls below the poverty line once rent is deducted. This hidden impact affects 1.95 million people.
The poverty rate in Spain rises to 23.5% when housing costs are included. This figure marks a four-point increase from the standard 19.5% rate. The calculation deducts rent from disposable income before measuring poverty status.
Approximately 1.95 million people fall into this category in 2025. These individuals were not classified as poor under conventional income measures. They cross the threshold only after accounting for the cost of housing access.
Hidden poverty emerges in 2025
The Foundation for Applied Economics Studies released the findings this Wednesday. The study tracks economic conditions from 2014 through 2025. It identifies a significant gap between official statistics and lived reality.
Researchers define this group as experiencing hidden poverty. Their disposable income appears sufficient on paper. However, mandatory housing expenses push their remaining funds below the poverty line.
Housing costs worsen existing conditions
The report notes that housing impacts those already in poverty. The economic situation of these residents deteriorates further. Rent payments reduce the resources available for other basic needs.
GN auto markets/housing: housing prices data underscores this trend. High rental costs act as a primary driver of financial strain. The burden is most acute for tenants in urban centers.
Data reveals structural financial gaps
The analysis relies on microdata from the National Statistics Institute. The Living Conditions Survey provides the underlying figures. Conventional metrics miss this segment of the population.
The conventional relative poverty rate stands at 19.5%. The adjusted rate reaches 23.5% after housing deductions. This discrepancy highlights the importance of housing in economic assessments.
