A report titled The cost of rent-seeking for wages and the productive economy, produced by the Economic Cabinet of the CCOO trade union, reveals the economic and social consequences of a housing model that allows property prices to rise significantly faster than wages and the capacity for wealth generation within the productive economy.
The report warns that rent-seeking in the housing market has become a barrier to improving living conditions for a substantial portion of the working class, as well as hindering the development of an economic model based on productive activity, investment, and job creation.
A growing share of working families' income is being allocated to housing costs, while rising commercial rents increase expenses for small businesses and self-employed individuals. This dynamic creates an increasingly evident contradiction: while wages should enable a decent living and businesses need to invest, innovate, and grow, escalating property rents absorb resources that could otherwise be spent on consumption, wage increases, productive investment, and job creation.
Housing costs outpace wage growth
The report highlights a widening gap between housing costs and wages. Data indicates that from the second quarter of 2013 to the same period in 2026, the price of purchasing a home increased by 108%, while the average wage only rose by 30%. This means that housing prices have escalated 3.6 times faster than wages, distancing millions of workers from the possibility of home ownership.
Furthermore, for those who can afford to buy, the effort required has also increased significantly. Currently, an average of 7.1 full annual salaries is needed to purchase a 90-square-metre home, compared to just 3.1 salaries in 1985. This figure does not include the necessary savings for the down payment, taxes, and other expenses, which amount to approximately 30% of the total price.
For those unable to buy, the rental market offers little relief. Between 2015 and 2024, prices for new rental contracts rose by 37%, while the average wage increased by only 21%. As a result, wage improvements achieved through collective bargaining and minimum wage increases are effectively negated by the rising cost of housing.
Impact on the productive economy
The challenges extend beyond the finances of working families. Rising commercial rents directly affect businesses, particularly small enterprises and self-employed individuals. According to data from the Tax Agency included in the study, commercial rents rose by 5.8% in 2021, 8.3% in 2022, and 4.5% in 2023. These costs drain resources from businesses, raise entry barriers for new ventures, and threaten the sustainability of existing establishments.
Moreover, high property yields create increasing competition between maintaining economic activity and converting properties into income-generating assets. In 2025, the gross return on housing investment was 16%, while the ordinary return on business equity was only 7%, according to Bank of Spain data. This situation pits property profitability against the profitability of producing goods and providing services, compromising the economy's capacity for growth, innovation, and job creation.
Reducing rents could boost consumption and employment
Housing expenditure occupies a significant portion of household budgets, leaving less money for other goods and services. The report cites an estimate from the Economic Cabinet of CCOO, suggesting that a 30% reduction in housing costs could generate between €21 billion and €26 billion in additional aggregate demand, potentially creating between 330,000 and 411,000 jobs over five years.
General strike calls for dignified wages and housing as a right
The findings of the report strengthen the rationale for the general strike called by CCOO and UGT for 11 November, which prioritises access to decent and affordable housing, wage improvements, price controls on essential goods and services, and the defence of quality public services. Housing should not continue to function as a mechanism for extracting rents that impoverish working families and harm the economy as a whole.
CCOO argues that it is essential to address both wages and housing prices. In the short term, the union proposes extending rental contracts and moving towards their conversion into indefinite agreements, as well as regulating seasonal, room, and tourist rentals to prevent evasion of regulations and price increases. In the medium to long term, it advocates mobilising resources equivalent to 1.5% of GDP annually to create a permanent stock of 1.5 million affordable homes within a decade through construction, acquisition, and capture of properties.
The general strike on 11 November also calls for a different economic model: one where living on a salary allows access to decent housing, where producing and working is more attractive than speculation, and where economic growth translates into well-being for the majority of society.
