Catalan households are now allocating 43.5% of their income to cover basic expenses such as housing, groceries, and utilities, according to a new study. The figure, which translates to an average monthly spend of €1,342, marks the highest level recorded since the barometer began, and highlights a growing financial strain that leaves three in ten families struggling to meet their payments.
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The findings come from the third ‘Baròmetre Planeta Propietari’, a report by insurance firm Mutua de Propietarios based on interviews with over 2,300 people across Spain. The study reveals the severe pressure on household budgets, particularly for those on lower incomes. For a family in Catalonia relying on a single earner making the national minimum wage (SMI), set at €1,134 per month over 14 payments in 2024, these essential costs would consume their entire net income. This leaves no room for savings or unexpected expenses.
While the proportion of income spent on necessities in Catalonia is stark, it is not the highest in Spain. The Balearic Islands lead the country with 50.1%, followed by Andalusia (49%), the Canary Islands (47.9%), and the Community of Madrid (46.2%). However, in terms of absolute monetary value, Catalonia’s average spend of €1,342 is second only to Madrid’s €1,384, and sits well above the national average of €1,230.
A Closer Look at the Bills
Housing is the single largest expense, demanding an average of €704.27 per month from Catalan families. The report highlights a significant trend: average monthly rent, at €716.36, now surpasses the average mortgage payment of €695. This reality underscores the challenges in the rental market, an issue that local and national governments are addressing through measures like Spain’s ‘Right to Housing’ law. This law enables rent caps in designated high-pressure areas.
Within Catalonia, Barcelona leads with the highest average rent at €739 per month, followed by Girona (€639.76), Lleida (€585.89), and Tarragona (€565.48). This persistent housing pressure has spurred calls for broader solutions, with the mayors of Barcelona and Lisbon recently urging the EU to take more decisive action on the urban housing crisis.
After housing, the grocery shop is the next largest expenditure, averaging €456.21 per month. Utilities, including water, electricity, and fuel, add a further €181.65 to the monthly total. These figures align with broader data from the National Institute of Statistics (INE), which found that housing-related costs accounted for over 34% of Catalan household budgets.
Who Feels the Pinch the Most?
The financial burden is not distributed equally. For low-income households, basic expenses consume a staggering 98% of their earnings. The pressure is also acute for specific demographics: renters allocate 61.6% of their income to essentials, while large families spend 57.7%. Even those living alone dedicate a significant 47.2% of their income to these costs.
The type of housing also plays a role. Residents in smaller properties (under 60 square metres) see 53.9% of their income go towards basic bills, while those in older homes built before 1964 spend 48.3%. These figures illustrate the deep-rooted affordability challenges, which local initiatives, such as the Catalan government’s purchase of homes to secure affordable rent, are mitigating.
“The economic effort associated with living in and maintaining a home continues to gain weight and reduces the financial peace of mind of families, forcing them to prioritise and adjust consumption decisions,” stated Laura Mulà, a director at Mutua de Propietarios.
“Silent Adjustments” Replacing Big Sacrifices
In response to this pressure, households are changing how they save. The barometer, first reported by Ara Cat, indicates a clear trend away from drastic, one-off cuts towards more subtle, everyday adjustments.
The most common strategies now involve shifting daily consumption habits. Sixteen per cent of respondents reported switching to store-brand products to lower their grocery bills. An equal number are postponing home improvements, while 15% are actively cutting down on electricity and water use or delaying furniture purchases. This marks a shift from previous years, where more significant sacrifices were common.
“We are facing a turn in the way people save, with fewer one-off cuts and more day-to-day adjustments,” Mulà concluded. “These, when accumulated, alleviate the economic pressure and uncertainty that many families feel.”
