Spanish household income up, wealth distribution shifts
The Banco de España (BDE) presented the main results of its 2024 Household Finance Survey (EFF). The survey provides detailed information on the income, wealth, assets, and debt of Spanish households, with data referring to the end of 2024 for wealth and debt, and 2023 for income.
Income growth and diverging wealth trends
The median household income in Spain grew by an annual 3.8 percent between 2021 and 2023, surpassing its 2001 peak for the first time in the survey's history.
This income growth was notably concentrated in the lower percentiles of the distribution, indicating a degree of catch-up for less affluent households.
However, gross wealth showed a much slower increase, rising by only 0.9 percent annually between 2022 and 2024.
This modest overall growth masks a more complex picture: gross wealth actually declined for the 50 percent of households with the lowest net wealth, as well as for the 10 percent with the highest net wealth, suggesting a squeeze at both ends of the wealth spectrum.
Survey insights into assets and methodology
The EFF is a unique, nationally representative biennial survey by the Banco de España since 2002, harmonized at the European level.
The 2024 edition surveyed 6,251 households, with 60 percent providing longitudinal data from 2022.
The proportion of households owning real assets has continued its sustained decline since 2011, notably among those with lower net wealth.
However, the principal residence's share within real assets increased for the first time since 2002.
Median financial assets have risen continuously since 2014, though current accounts are losing weight within financial assets for higher net wealth households.
Uneven recovery, structural challenges
The survey highlights a nuanced recovery for Spanish households, with income gains favoring lower earners but wealth disparities persisting.
While financial assets show growth, the continued decline in real asset ownership, particularly for less wealthy households, points to structural challenges in wealth accumulation.
Policymakers must address these diverging trends to foster more inclusive economic stability.