Having a job in Spain no longer ensures escaping poverty when faced with market-rate rent payments.
This is the conclusion drawn from a report released by Oxfam Intermón on Tuesday, which estimates that housing expenses push an additional 770,000 working individuals below the poverty threshold in Spain, raising the total to nearly three million.
The study, crafted by Alejandro García-Gil, who oversees housing, employment, and social policies for the organization, is based on the Living Conditions Survey 2025 from the National Statistics Institute (INE), utilizing 2024 income data.
Rather than applying a fixed threshold, the methodology deducts rent, mortgage, and property taxes from household income, recalculating the median to accurately reflect economic capacity after housing expenses.
Before these costs are accounted for, 11.48% of employed individuals—around 2.2 million people—were already experiencing in-work poverty in 2024. When housing costs are included, this rate climbs to 15.49%, an increase of over four percentage points.
Rental Costs: A Major Contributor to Economic Strain
The impact is particularly harsh for those renting at market rates. According to Oxfam Intermón's estimates, their in-work poverty rate jumps from 19.35% before rent to 34.08% afterward: one in three working renters falls below the poverty line after paying rent, marking a 76% relative increase.
The disparity with other housing situations is significant: among those still paying a mortgage, the post-housing expense poverty rate is 10.22%; for those who own their homes outright, it falls to 7.95%.
"Evictions represent the extreme face of the housing crisis, but they're not the only issue. There's a less visible reality: individuals who work and barely manage to pay for their home each month, yet afterward lack sufficient income for a dignified life," García-Gil explains.
Families and Regions Hit Hardest
Families with children are particularly affected: in-work poverty nearly reaches 40% in households with three or more children and hits 29.6% in single-parent homes, once housing costs are deducted.
By region, Madrid leads in increases when factoring in housing expenses: it rises from 7.29% to 12.73%, a jump of 5.44 points. It is followed by Catalonia (7.90% to 12.86%) and Murcia (15.37% to 20.23%). Andalucía records the country's highest rate: 17.65% before housing costs and 20.98% afterward.
The report also highlights that in-work poverty barely decreased from 2022 to 2024—from 11.64% to 11.48%—despite over 6% GDP growth during this period, indicating that economic growth does not automatically benefit the most vulnerable workers.
Implications for Cuban Workers in Spain
For Cubans working in or considering moving to Spain—a community that numbered approximately 287,490 registered residents by early 2026—these findings are particularly relevant. While the study does not provide data broken down by nationality, the profile of the most affected workers matches that of many newcomers: immigrant, market-rate renter, and employed in low-skilled sectors.
More than 68% of non-EU individuals in Spain live in rental housing, compared to 13.1% of Spaniards, and Latin American workers earn on average at least 31% less than their Spanish counterparts.
The national average rent reached a historic high of 15.1 euros per square meter in May 2026, with Madrid at 23.4 euros per square meter.
The report is released amid a wave of social movements advocating for housing reform in Spain. The government has enacted two royal decrees in response to recent protests, which Oxfam Intermón regards as a partial advancement.
"An effective housing policy must ensure not only a roof over one's head but also the ability to live with dignity beneath it," García-Gil concludes.
Understanding Housing Challenges in Spain
What does in-work poverty mean in Spain?
In-work poverty in Spain refers to individuals who, despite having employment, do not earn enough to escape poverty, especially after accounting for significant expenses like housing.
How does housing cost affect in-work poverty?
Housing costs significantly impact in-work poverty by consuming a large portion of income, pushing individuals below the poverty line even if they are employed.
Why are Cuban workers in Spain particularly affected?
Cuban workers in Spain are particularly affected due to their high likelihood of renting at market rates and working in lower-paying jobs, aligning with the profile of those most impacted by in-work poverty.