The stock of unsold new houses remains at 107,000 in Catalonia and 818,000 in the whole of Spain

Barcelona (ACN).- The stock of unsold new residences has reached 106,900 in Catalonia and 818,000 in the whole of Spain. That represents 2.8% and 3.2% respectively of all stock according to a study by CatalunyaCaixa. However the situation is not the same throughout Catalonia, and some places such as Barcelona have a smaller stock in relation. In terms of provinces, Tarragona (4.9%) and Girona (3.1%) have a percentage of unsold new houses above the Catalan average, while Barcelona (2.2%) and Lleida (2.5%) are below the average. This stock will rise to 131,100 houses in Catalonia, while in the whole Spain the figures will reduce to 693,000 by 2015. To resolve this problem of surplus stock, the study proposes promoting interest among young people who work but still live at home with their parents, a plan which could increase the demand to 500,000 residences.

Thus, between the third quarter of 2010 and the same period in 2011, the last published data reveals that the stock of unsold new homes has increased by 13,000 units throughout the Spain and by 1,500 in Catalonia. Josep Oliver, professor of Applied Economics at UAB and the Director of the study ‘Real estate sector in Spain and Catalonia: Situation and Perspectives’ explains that “the adjustment of existing stocks is still slower than we had hoped two years ago.”

The study used the demographic projections of Spain’s National Statistics Institute, which predicts a decline in population in Catalonia and the whole of Spain. According to Oliver, “the difficulty of combining stock figures that remain the same and the decrease of the population affect the recovery process in the housing sector.”  The UAB professor explains, “the conclusion is that a reduction regarding housing will be difficult to establish here until 2015. The potential demand is destabilized by demographic and macroeconomic reasons.”

The study recommends helping young people to rent empty apartments

One solution proposed by the study is that governments encourage responsible working young people who still live with their parents to access the property market. “The rental market in Spain is the lowest in Europe. Spain is a market of owners with more than 80% of families living in owned apartments, a rate more typical for Eastern Europe than the Western part of the continent. At the same time, 53% of young people between 16 and 34 live with their parents, with an average of less than 20% in the Scandinavian countries,” said Oliver.

How many of these young adults can leave their parents’ home and pay rent at a market price equal to the supply? “2.9 million of these 5.7 million young people work and get wages,” says Oliver. The study calculated the salaries of these individuals and considered that if the rent represented 30% of wages, young people would leave their home. Subsequently, the study has estimated that 561,000 young people could access the rental market between 2011 and 2015.