The article compares housing affordability between Madrid and several Latin American cities, finding that while property prices per square meter are higher in Madrid than in Mexico City, Buenos Aires, Bogotá, or São Paulo, the cost of renting relative to local wages often makes it less affordable in those Latin American cities. In Madrid, an 80-square-meter flat would consume about 71% of the average gross salary according to a study by Fotocasa and InfoJobs, whereas in Buenos Aires, a two-room apartment takes up nearly 80% of an average worker's income. The article highlights that while property prices are rising slowly in Madrid, rents continue to increase sharply, setting new records at €23.4 per square meter monthly in September.
Written locally by qwen2.5:14b on 2026-10-07,
using this article's own text rather than the other coverage of the
same event (that is the story summary below).
Story summary
Homes cost more per square metre in Madrid than in several major Latin American cities like Mexico City, Buenos Aires, Bogotá, and São Paulo. However, lower wages in these Latin American cities can make renting less affordable compared to Madrid. For example, the price of one square metre of housing in Madrid would buy almost two square metres in central Mexico City or nearly three in Buenos Aires, Bogotá, or São Paulo.
According to a study by Fotocasa and InfoJobs, renting an 80-square-metre flat in the Madrid region at December 2025 asking prices would absorb 71% of the average gross salary advertised on InfoJobs that year. In contrast, in Buenos Aires, a two-room apartment consumes almost 80% of an average worker's income. In parts of Santiago’s metropolitan area, someone earning the minimum wage could spend between 78% and 96% of their take-home pay on rent for a small flat.
The study highlights the pressure on local incomes in various cities, emphasizing that higher property prices do not always equate to heavier financial burdens if wages are also considered. However, differences in flat sizes, geographical coverage, and wage definitions mean direct comparisons are challenging.
Written for “Housing Affordability Comparison” on 2026-10-07,
grounded in this article and the 0 other(s) covering the same event.
Homes cost more per square metre in Madrid than in several major Latin American cities, but lower wages in those cities can make renting even less affordable.
asserted
renting → cost → cities
For the price of one square metre of housing in Madrid, you can buy almost two in central Mexico City and nearly three in Buenos Aires, Bogotá or São Paulo.
asserted
you → buy → Aires
But higher property prices do not necessarily mean a heavier burden on local wages.
asserted
prices → mean → wages
The key question is how much of their income locals need to spend to afford a home.
asserted
locals → need → home
If you compare rents with wages, the gap shrinks and in some cases even flips.
asserted
gap → compare → cases
In the Madrid region, renting an 80-square-metre flat at December 2025 asking prices would have absorbed 71% of the average gross salary advertised on InfoJobs that year, according to a study by Fotocasa and InfoJobs.
uncertain
renting → rent → Fotocasa
In Buenos Aires, a two-room apartment comes to almost 80% of an average worker's income.
asserted
apartment → come → income
And in parts of the Santiago metropolitan area, anyone on the minimum wage can end up spending between 78% and 96% of their take-home pay on the rent for a small flat.
asserted
anyone → end → flat
These measures illustrate the pressure on incomes, although differences in flat sizes, geographical coverage and wage definitions mean they are not directly comparable.
asserted
they → illustrate → sizes
A commonly used affordability benchmark is to spend no more than 30% of income on rent.
asserted
benchmark → use → rent
Taking Spain's modal salary (the most frequently recorded salary, rather than the average), which was €16,520 in 2024, and dividing it by 12 gives approximately €1,377 a month before tax.
asserted
which → take → tax
Applying that benchmark leaves about €413 a month for rent.
asserted
Applying → apply → rent
At that price, searches on housing portals found nothing available in Madrid.
asserted
searches → find → Madrid
The exercise produces virtually the same result in Barcelona.
asserted
exercise → produce → Barcelona
For €500, you can find somewhere noticeably larger than in the national capital, but the search returned just three homes.
asserted
search → find → homes
How much housing costs in Madrid
Existing homes in Madrid were advertised at an average of €6,471 per square metre in August, according to property website Idealista.
uncertain
homes → cost → Idealista
The slowdown has not reached the cheapest districts: in Villaverde, the borough with the most affordable homes per square metre, prices have jumped 25% in a year.
asserted
prices → reach → year
Rents, meanwhile, show no sign of hitting a ceiling.
asserted
Rents → show → ceiling
In September, they set a record of €23.4 per square metre a month, 4.8% more than a year ago.
asserted
they → set → metre
A study by InfoJobs and Fotocasa, comparing advertised salaries with asking rents for an 80-square-metre home, put the cost at 71% of gross pay in the Madrid region in 2025, compared with a national average of 50%.
asserted
study → compare → %
The Madrid regional government has not designated any “stressed” housing areas under Spain's Housing Act, which allows rent limits in those areas.
asserted
which → designate → areas
Other regions, including Catalonia, the Basque Country and Navarre, have used the mechanism.
asserted
regions → include → mechanism
The national government has also sought to intervene.
asserted
government → seek → ?
After parliament rejected two housing decrees on 2 October, the cabinet approved replacement measures on 6 October, including rental contract extensions, limits on annual rent increases and protection against evictions for vulnerable households.
asserted
cabinet → reject → households
The new decrees still require parliamentary ratification.
asserted
decrees → require → ratification
Madrid versus other Spanish cities
Madrid is not the most expensive provincial capital for buying a home, although it is for renting.
asserted
it → buy → renting
According to Idealista, in August San Sebastián was more expensive: €6,680 per square metre versus Madrid's €6,471.
uncertain
Sebastián → accord → 6,471
Behind them came Palma (€5,835) and Barcelona (€5,440).
asserted
Palma → come → them
For rentals, Madrid led the way with €23.4 per square metre in September, ahead of Barcelona (€20.1) and Palma (€19.6), while the national average was €15.1.
asserted
average → lead → Barcelona
At the same time, Madrid’s asking house prices rose 2.2% in the year to August, the smallest increase among the cities compared here.
asserted
prices → rise → cities
Seville (11.5%) and Bilbao (10.6%) recorded the largest increases.
asserted
Seville → record → increases
Barcelona, a cap Madrid does not have
Barcelona has been officially designated a stressed housing area since 2024.
asserted
Barcelona → have → 2024
According to the Catalan Land Institute (Incasòl), the average rent on new contracts was €1,137 a month in the first quarter of 2026, 4.7% less than two years earlier.
uncertain
rent → accord → 2026
The latest asking-rent figures also show a contrast: rents in Barcelona fell 0.8% in the year to September, while in Madrid they rose 4.8%.
asserted
they → ask → Madrid
Supply remains contested.
asserted
Supply → remain → ?
In the first quarter, 8,156 contracts were signed in Barcelona, 17% fewer than in the same period of 2024.
asserted
contracts → sign → 2024
The regional government counters that the number of active contracts for regular residential rentals across municipalities with rent caps has increased by 20,994 since the measure was introduced.
asserted
measure → counter → 20,994
Idealista's spokesperson argues that advertised supply is falling most sharply in the most heavily regulated markets.
asserted
supply → argue → markets
Housing costs still stretch wages across Spain
San Sebastián, the priciest provincial capital for buying, has seen advertised rents fall by 2.5% in a year.
asserted
rents → stretch → year
In Bilbao, advertised rents are down 0.3%, although sale prices are up 10.6%.
asserted
prices → advertise → Bilbao
…and 58 more, not listed.
The Aporia
