The report also reflects that in 2021, the price per square metre rose by 3.4% and wages fell by 3.6%.
Thus, average salaries in the Balearics, in five years, have gone from 21,961 euros in 2016 to 23,577 euros in 2021, an increase of 7.4%, while the price of housing has risen from 1,996 euros per square metre in 2016 to 2,890 euros per square metre in 2021, which represents an increase of 44.8%.
As for the annual variation of the price for sale and salary by province, in the Balearics the average salary was 24,463 euros in 2020, while in 2021 it was 23,577 euros, a decrease of 3.6% from one year to the next. Meanwhile, the average price of a home was €2,794 per square metre in 2020, in 2021 it was €2,890, an increase of 3.4%.
The Director of Studies and spokesperson for Fotocasa, María Matos, explained that the report "clearly" presents the "major problem" of access to housing in the country, which is that salaries and property prices "have not increased at the same rate".
Matos added that this imbalance has meant that people have to make a "greater effort" to be able to "afford" to buy a home.
Matos also pointed out that in a context of "runaway" inflation, the gap could increase "even more" by making property prices more expensive while reducing the disposable income of households, "if they lose purchasing power due to the increase in the Consumer Price Index".
"The progressive evolution of the average wage in the country between 2017 and 2020 was slowed by the effects of the pandemic on the economy and the activity of companies," said the director of Communication and Studies at Infojobs, Monica Perez, who added that we are currently going through a period of "wage moderation" that, "although it is necessary" for companies to be able to cope with the "difficult" economic situation caused by the energy crisis and the lack of supplies, also has a "serious" impact on the purchasing power of workers "in the face of rising inflation".
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Chaos at U.K. airports and airlines because they can’t get people. Shortage of workers in Mallorca a little bit of chaos at the airport causing difficulty. Anyone seeing a common thread here.. Matos says People needs to “ make a greater effort “ to afford a home. Shelter a basic human need!…wtf. Accommodation cost low wages prevent locals buying and staying on the island. Seasonal workers won’t come because of accommodation costs, out way low salaries benefit. Possibly another common thread. Tourism needs staff ,wage moderation, will not fix this problem. Islands wages need to rise affordable accommodation needs to be available. I worked 46yrs. 32 at business senior level. My experience there’s alway some difficult economic situation. Relying on a 1970 business model won’t fix Mallorca’s dysfunctional labour economy. If more expensive mean some tourists capacity loss so be it. Transform Magaluf into residential new town, kill 2 birds with one stone. A bad reputation driving away higher value is a worst outcome. Perez says the industry needs wage moderation. Its wage bill will be very moderate if it can’t get staff. It also won’t have a business.