With a median median household income of $ 566 per month, it would take 70 years to raise enough capital to purchase a home.
One of the structural problems of the Ecuadorian economy is that the level of salaries that are paid are very low compared to the cost of living. If the income of formal and informal workers are averaged, the average income of an Ecuadorian with some type of job reaches $ 283.3 per month.
Thus, with the updated figures as of October 31, 2021, a average worker An Ecuadorian would not be able to raise money to buy a small apartment, not even saving all the wages of his life.
For example, getting enough money for a $ 40,000 property would represent saving all the resources received for 141 years. If you look at the median household income of around $ 566, the time ‘drops’ to 70 years.
In the case only of Ecuadorian women, whose average income is $ 240.2 per month, the time to save enough for a home own exceeds 166 years.
In this context, the promise of owning a home is completely unfeasible for the vast majority of Ecuadorians who survive in informality (63% of the Economically Active Population); or have a formal job, albeit with low pay.
Far from international standards
According to the Global Real Estate Bubble Index 2021, in a high-income country, a family of middle-management workers in the service sector needs 20 years of savings to raise enough for a home 60 square meters
In the case of Ecuador, a property of these characteristics costs around $ 117,000. If financing is not obtained in a bank or cooperative, the savings effort would last up to 80 years.
On the contrary, access to housing is somewhat easier, for example, in North American cities such as Los Angeles and Miami, where it currently takes five and four years to gather resources to achieve the goal.
According to a latest study by the consulting firm kantar, about 34% of Ecuadorian families have an income of $ 850 each month. In other words, only three out of every 10 households in the country have the capacity to request a loan or save to be able to acquire an apartment or a house.
A small fraction of that percentage (less than 10%) are those who actually pay income tax in the country; and With regard to the tax reform of the Executive, they are the ones called to contribute more to compensate the additional expenses as a consequence of the pandemic. (JS)
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