Spain decides to help its youth with subsidies for renting a place or buying a home in small Spanish towns.
As Spanish youths stay longer at their parents’ homes because they can’t afford their own place, the government of Spain will subsidize part of their rent.
The Youth Rental Bonus scheme aims at improving conditions of access to housing and facilitating the emancipation of young Spanish.
Spanish between 18 and 35 years old may receive up to 6,000 euros (US$6,800) – €250 per month – for a period of two years in order to finance the rent. They may request the government subsidy now if they earn less than €24,000 ($27,500) a year. The government has provisioned €200 million annually for this Youth Rental Voucher.
Subsidies for access to renting and property ownership
The subsidy “is an important element so that housing (prices) stop being such a hurdle for youth emancipation“, Housing Minister Raquel Sanchez said at a news conference on January 18.
It goes on top of a 5-year rental assistance program. Combined with the voucher, the government can end up covering for up to 75% of the rent for two years.
Young Spanish can also receive financial support up to €10,800, or 20% of the price, if they buy a property in a town smaller than 10,000 people and live in it for at least five years.
Older emancipation is not a phenomenon specific Spain’s new generations. They are called bamboccioni in Italy, for big babies, while the country has some of the highest shares of home ownership limiting offers for rentals. In France, they are called Tanguy out of a movie depicting a 30-year-old student with parents craving to see him leave the house.
But it’s an increasing trend in Spain. As many as 55% of 25-29 year-olds in 2020 still lived with their parents, one of the highest shares in Europe according to Spain’s official data. It increased by 6.5 percentage points since 2013.
One in four 30-34 year-olds lived with their parents in 2020.
Spain’s youth struggles to find a job in the country largely explains it. In Spain, 29% of people under 25 are registered as jobless.
Critics in rental subsidies argue it tends to further increase rents. Moreover, the population who lives just over the threshold may feel unfair not to receive financial support.
Housing plan for decent homes
The program is part of the State Housing Plan 2022-2025 which seeks to bring more “decent housing” to the population. The government will inject €3.3 billion ($3.7bn) for the plan.
The program also provides a rental assistance program for older low-income tenants or in situations of sudden vulnerability. It will also increase immediate residence solutions for victims of gender-based violence, homeless people or people subject to eviction.
Spain should also increase supply for low-rent accommodation on the longer term.