A report from the Urban Critical Studies Group reveals that the median income of households renting properties exceeds €50,000 annually, compared to less than €20,000 for tenants. Economist Eduardo Garzón shares the data to debunk the myth of the small landlord.
The median annual gross income of households with rental properties amounts to €51,007, while that of households living in rental accommodation stands at €19,758. These figures come from the Tax Agency as reported in a study by the Urban Critical Studies Group, disseminated by economist Eduardo Garzón, a Doctor in Economics and Business, as published by Marca.
The difference remains even when excluding rental income from landlords' earnings. According to the study, the median income of these households would drop from €51,007 to €40,515 annually, still about €20,000 above the median income of tenants.
"But what if we took away their rental income? The median for landlords drops from €50,000 to around €40,000. They still earn double that of tenants. They do not depend on rent to live," asserts the economist.
The report also compares these households to those who own their primary residence but do not have properties for rent. In this case, the median income is €34,954 according to the Tax Agency's data, which is below that of landlords.
The data does not come solely from the Tax Agency. The INE Living Conditions Survey places the median gross income of landlord households at €56,473, compared to €26,288 for tenants. Meanwhile, the Bank of Spain's Financial Survey of Families records €50,604 for landlords and €20,624 for tenants.
"The other two sources say the same: in the INE, tenants earn more than €25,000 and landlords more than €55,000. In the Bank of Spain, landlords are above €50,000 and tenants around €20,000. Three different sources, same result," writes Garzón.
The economist also highlights the distribution of households by income levels. According to the data he shares in his thread, nearly 50% of landlords earn over €53,000 annually, while approximately 10% earn less than €18,000. Among tenants, nearly half have incomes below €18,000 annually and less than 8% exceed €53,000.
"In detail: almost 50% of landlords earn more than €53,000 a year. Only about 10% earn less than €18,000. That is the truly vulnerable group, but it is a minority, not the average landlord," points out Garzón.
Garzón uses this data to question whether housing policies should be designed with low-income small property owners in mind. "If you want to protect landlords with low incomes, you can create a policy aimed at that 10-20%. What makes no sense is to design the entire housing policy thinking of them," he argues.
In the final part of his thread, the economist evaluates the rental model and defines it as "rentism." "The average landlord is not the poor person supplementing their pension. It is rentism: a significant part of the working class's salary goes to those who do not work, or work little," he concludes.
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