"Young people can't buy homes like their parents did; tourism no longer allows it." The words of Pere Salvà, professor emeritus of human geography at the University of the Balearic Islands. Many have no choice but to stay with their parents or share an apartment. This has negative consequences, the birth rate being one. "We have figures similar to the worst in the world. In the Balearics, the ratio is 0.9 children per woman; in South Korea it's 0.7."
In a region where the economy has been principally driven by tourism since the 1960s, Salvà points out that in the 80s and 90s and even into the start of the century it was possible to save and buy properties in the Balearics.
Housing prices as they have become have made it virtually impossible for young people to buy a home in which to pursue their life plans. "Tourism no longer offers enough to buy a place on the islands." Salaries have not risen in line with costs of living, so the younger generations lack the capacity to save and buy a home. "How are they going to pay a mortgage of over €300,000?" The 'shopping basket' is one of the most expensive in Spain. The remaining money doesn't allow for housing plans.
Salvà draws attention to the problems with attracting various categories of worker from the mainland. "We lack doctors, nurses, police officers, waiters... . With the salaries on the islands and the high cost of living, it's not possible." In his view, the only people willing to come to work are people from countries where the situation is even worse. "The only ones who come are those willing to live in substandard housing."
Despite a low birth rate and the issues with attracting certain workers, he refers to National Statistics Institute forecasts for population growth. "100,000 homes will be needed to meet demand by 2037; twenty will have to be built per day." This is a highly unlikely scenario because the islands are a limited territory.
Scarce supply, coupled with strong demand for housing from foreign investors, has driven up prices. Therefore, combined with the high cost of living and low salaries, it's that much harder for young people to buy a home than their parents.
* The average salary in the Balearics is estimated to be around 27,500 euros gross per annum; roughly 2,300 per month (for twelve months). In the tourism sector, salaries do vary, but under the hospitality industry agreement, monthly gross salaries are from 1,645 euros per month to 2,095 euros (gross). These salaries are only for certain job categories (the bulk of the jobs), e.g. waiters, chefs.