Young people in the Balearic Islands need almost 30 years of savings to be able to buy a home.

PalmBuying a home in the Balearic Islands has become a nearly impossible mission for those under 35, who need an average of 29.5 years of saving to gather the money needed to access a mortgage, according to a study by the mortgage comparison site yAhorro.

The Balearic Islands are the most stressed region in Spain, with an average house price of €396,573, well above the national average of €226,226, according to data from the Property Registrars for the second quarter of this year.

Added to this situation is the fact that young people in the Islands earn an average gross salary of €20,179 per year, further widening the gap between income and housing costs.

Financial institutions typically require prior savings equivalent to 30% of the property price, which covers the down payment (20%) and purchase costs (10%). This means that a young person in the Balearic Islands would need to accumulate more than €119,000 before being able to apply for a mortgage.

The situation in the Balearic Islands is even more negative than in regions like Madrid, where a young person would need around 29 years of savings, since in the islands the pressure of tourism and foreign investment drives prices well above local wages.

Across the country, young people need almost 20 years of savings on average to purchase a home of around 100.5 square meters. According to the INE (National Institute of Statistics), the gross annual salary is around €19,185, while the average price has already reached €226,285.