A report by the Economic Cabinet of Comisiones Obreras (CCOO) highlights that Canarian households that have signed a new lease agreement since March 2020 have seen their purchasing power decrease by ten percentage points. This is because the rise in rental prices has outstripped salary increases during the same period, impacting not only the income available for other basic expenses but also pushing some households towards precariousness.
The study details that while salaries have managed to keep pace with rent increases in existing contracts, they falter when faced with new agreements. Properties that change tenants or enter the market experience such significant price hikes that they negate any recent salary advancements.
The province of Santa Cruz de Tenerife ranks among those with the highest increases nationally. Between 2015 and 2024, the price of new rental contracts has surged by 43% in this province, tying with Toledo and Castellón, and only surpassed by Valencia, Balearic Islands, and Málaga. In contrast, existing contracts only rose by 23%. In the province of Las Palmas, the increase for new contracts stands at 35%, similar to Madrid or Barcelona, while older contracts grew by 21%. These gaps of nearly 20 points in the Archipelago indicate that the most significant price jumps are occurring in contract renewals.
The report also notes that the majority of this price escalation has occurred post-pandemic. The loss of purchasing power between 2015 and 2024 amounts to 9%, a figure close to that experienced in just four years after the health crisis.
CCOO attributes this situation to the limitation of rent increases and the lack of public housing construction. According to the union, restrictions on rent hikes in the Urban Leases Law have led many property owners to withdraw their homes from the traditional rental market, dedicating them to holiday or seasonal rentals. This pressure, combined with the lack of construction of a substantial public housing stock, is creating a 'perfect storm' that worries tenants as their contract expiration dates approach.
