Spain tackles housing 'social emergency' as rents double in a decade

In Spain, a significant number of people are grappling with the challenge of finding affordable housing. Blanca Castro, a resident of central Madrid, is particularly concerned about the possibility of losing her rented apartment. Her kitchen is in disrepair, with a large hole in the ceiling that leaks water, rendering it nearly unusable. As a result, Blanca has resorted to washing her dishes in the bathtub and has set up a makeshift cooking area in her living room using a camping stove. Unfortunately, she is not alone in her struggles; many of her neighbors in the same apartment building are facing similar issues. They claim that the property management company has ceased responding to their requests for essential maintenance since they were informed that their rental contracts would not be renewed. Blanca expresses her frustration, stating, 'The current rental bubble is encouraging a lot of big owners to do what they are doing here. ' This indicates that landlords are eager to evict long-term tenants to convert their apartments into short-term tourist rentals or to significantly increase the rent. Despite these challenges, Blanca and her fellow tenants are determined to remain in their homes, viewing the owners' actions as attempts to force them out. In central Madrid, rental prices have skyrocketed over the past decade, doubling while salaries have only increased by about 20%. This disparity has left many residents struggling to afford their homes. Blanca notes, 'For another home like this, I'd have to pay double or more what I'm paying now. ' This situation has sparked widespread concern among Spaniards, leading to protests demanding government intervention to make housing more affordable. On April 5, thousands of individuals took to the streets in Madrid and other cities to voice their frustrations. A report from Spain's central bank reveals that nearly 40% of renting families now allocate more than 40% of their income to housing costs. Juan Villén, a representative from the property portal Idealista, highlights the significant imbalance between housing supply and demand. He explains, 'Demand is very good, the economy is growing a lot, but supply is dwindling very fast. ' For instance, in Barcelona, the competition for rental properties has intensified dramatically, with the number of families vying for each rental unit increasing from nine to fifty-four in just five years. Rental prices in the city have surged by 60% during this period. Mr. Villén emphasizes the urgent need for more housing construction to address this crisis, stating, 'We need to build more properties. ' The Spanish government has recognized the severity of the situation, labeling it a 'social emergency. ' They estimate that the country requires between 600,000 and one million new homes over the next four years to meet the growing demand. This need for additional housing has been exacerbated by the influx of immigrants who are joining the workforce and contributing to Spain's economic growth. The government has also pointed out the lack of social housing, which constitutes only 3. 4% of the total housing supply in Spain, one of the lowest rates in Europe. In 2007, during a housing boom, over 600,000 homes were constructed in Spain. However, due to high construction costs, limited available land, and a shortage of labor, only about 100,000 homes were completed in 2024. To encourage construction, the government is allocating land for affordable housing projects and ensuring that public housing does not end up in the private market. Prime Minister Pedro Sánchez has expressed a willingness to intervene in the rental market to control prices. At a recent event celebrating the opening of 218 low-rent apartments in Seville, he stated that Spaniards want the housing market to operate fairly and justly, rather than being driven solely by profit. The government has also identified short-term tourist rentals as a contributing factor to the housing crisis. Last year, protests erupted in various regions, including the Canary Islands and the Balearic Islands, as locals expressed their concerns about the rising number of tourists and the impact on rental prices. In response, several city governments have announced plans to limit the issuance of tourist rental permits, with Barcelona taking a more aggressive approach by revoking licenses for all short-term rentals by 2028. Additionally, the government has passed a housing law that includes a cap on rental prices in areas experiencing rapid price increases. However, political resistance has hindered the implementation of this legislation, which is currently only being enforced in the northern regions of the Basque Country, Navarre, and Catalonia. The success of this law remains uncertain. The Socialist-led regional and central governments have reported a 3. 7% decrease in rental prices in 'high-tension' areas of Catalonia since the cap was introduced, with Barcelona experiencing a 6. 4% decline. Nevertheless, critics argue that the rental cap has deterred property owners from renting their units, leading to a reduction in available rental properties. Protests against high rental prices and evictions have become increasingly common in Spain this year. Mr. Villén notes, 'On the supply side, the problem is that all measures taken by the local or national governments are going against landlords. ' He explains that even developers who were previously building rental properties are now selling them off to avoid entering the rental market. Another controversial proposal from the central government is a tax of up to 100% on properties purchased by non-residents from outside the EU, as these homes are often left unoccupied. This measure could significantly impact British buyers. The conservative opposition has criticized the government for being too heavy-handed in its approach. However, as public frustration continues to grow, many citizens are calling for more decisive action from their leaders. Gonzalo Álvarez, a representative from the Sindicato de Inquilinas e Inquilinos, a tenants' rights organization, acknowledges the housing shortage but argues that simply building more homes is not the solution. He asserts, 'There is a lack of housing because homes are being hijacked - on the one hand tourist flats, and on the other hand all the empty flats belonging to vulture funds and the banks. ' His organization is advocating for significant mandatory rent reductions for property owners and is threatening to organize a nationwide strike where tenants would refuse to pay rent. He emphasizes, 'The [central and local] governments are not setting any limits, so who is going to? We will have to do it.