Hundreds of thousands of Spaniards marched across 40 cities on April 5 to protest soaring rents, unaffordable housing, and the lack of government action. Protesters say the housing market has become so distorted that even people with full-time jobs can’t afford to rent or buy, especially in big cities like Madrid and Barcelona.
How bad is the housing crunch?
Average rents in Spain have nearly doubled in the past decade—from €7.2 per square meter in 2014 to €13 in 2023. House prices have surged 44% in the same period, according to real estate website Idealista. Meanwhile, salaries have lagged far behind. For young people, it’s nearly impossible to live independently. Many end up sharing cramped apartments or staying with their parents well into adulthood.
What’s fueling the crisis?
Lack of public housing: Only 2% of Spain’s housing stock is public rental, compared to the OECD average of 7%. In contrast, countries like France (14%), the Netherlands (34%) and the UK (16%) have far more public housing options.
Tourism boom: Spain welcomed a record 94 million tourists in 2024. Many landlords now prefer renting to tourists via platforms like Airbnb, where profits are higher than from long-term tenants.
Foreign investment: Large investment firms and hedge funds have been buying up entire buildings, especially in major cities, and converting them into tourist rentals or short-term leases.
Housing supply shortage: The country builds only about 120,000 new homes a year—far less than the 500,000 homes the Bank of Spain says are needed. Construction levels are still well below pre-2008 levels.
How are people affected?
People like Mari Sánchez, a 26-year-old lawyer, say they spend up to 40% of their salary on rent just to share an apartment. Others, like 65-year-old Margarita Aizpuru, are being evicted as landlords shift toward more profitable tourist rentals. The squeeze is no longer limited to city centers—it’s spreading everywhere.
What has the government done?
Spain’s centre-left government has introduced rent control mechanisms in select regions, like Barcelona, but experts say the measures haven’t made a significant difference. Activists and labor unions say more aggressive reforms are needed, such as:
- Expanding public housing
- Tightening regulations on short-term rentals
- Incentivizing landlords to offer long-term leases
Why is this politically sensitive?
The protests cut across party lines. Activists chanted “No matter who governs, we must defend housing rights,” signaling growing frustration with all levels of government. Housing Minister Isabel Rodríguez acknowledged the crisis, stating homes should be for “living in and not for speculating.”
(With AP, Reuters inputs)
Source link