Rental Delinquency: 25% of Renters Late on Payments in 2022
In the Balearic Islands, a quarter of residents fell behind on rent payments during 2022. This issue was not exclusive to the region, highlighting a global trend of financial instability among renters. Economic fallout from global crises, paired with declining public aid, led to significant increases in rent delinquency.
Rent Delinquency on the Rise
In 2022, the Balearic Islands saw a considerable increase in residents who were unable to keep up with their housing payments. This figure surged from 17% to 25.8% within just one year. Coupled with a rise in those deferring utility payments, these statistics shed light on the growing economic strain felt by households across the region.
- The percentage of people deferring basic utility bills rose from 11% to 13.2%.
- Almost 40% of residents couldn’t afford an unexpected expense exceeding €800 without taking out a loan.
- The number of individuals who could not afford to consume animal proteins every two days jumped from 2.9% to 7.4%.
The Effect of Public Aid
According to the European Anti-Poverty Network (EAPN), without public aid, 40.8% of the population would live under the poverty line. This number is notably reduced by state aid, to 21.5%, signifying the importance of public assistance in alleviating financial burdens. However, these figures still represent over 263,000 citizens at risk of poverty or social exclusion.
- Public aid decreased the poverty rate by 9.1 percentage points in the Balearic Islands.
- The risk of severe poverty decreased from 9.2% in 2021 to 8.4% in 2022.
Looking Towards the Future
Even with the assistance provided by public aid, the problem of rental delinquency persists. In order to attain the Sustainable Development Goals (SDGs), also known as the 2030 Agenda, it’s necessary to address this issue head-on. Achieving these goals will require reducing the gap between northern and southern regions in Spain and decreasing the number of people living in poverty or social exclusion by 2.1 million nationwide.
In conclusion, the rising rental delinquency, exacerbated by a global economic downturn, highlights the crucial role of public assistance and the need for more substantial solutions. As we move into 2023, addressing this issue must remain at the forefront of economic and social policy discussion.
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