Hundreds of people are protesting Spain's housing crisis by camping in Madrid's Puerta del Sol square. Protesters, including 21-year-old university graduate Pierina Nicuray and 19-year-old student Jorge Moreno, attribute the crisis to a lack of homes, rising rents, and the actions of investment firms.
Spain has experienced an average increase in rental costs of 84% over the past decade, according to property outlet Idealista. In some areas, such as Marbella, increases have been close to 150%. This has made housing the biggest concern for Spaniards, with a Centre for Sociological Research (CIS) study showing public support for measures like higher taxes on multiple property owners and limits on short-term tourist accommodation.
The Spanish Prime Minister, Pedro Sánchez, presented emergency measures to address the housing problem, stating he was legislating "against those who consider housing just another object on the market with which to speculate." However, these reforms were rejected by Congress, leading S��nchez to call a snap election for next month.
While protesters and the government point to speculative practices, Jorge Galindo, director at the Esade centre for economic policy, suggests that a shortage of supply compared to demand is the primary cause of rising rentals. The Bank of Spain estimates a housing shortfall of around 750,000 homes, which its deputy governor, Soledad Núñez, warned could increase to one million by 2028.
Factors contributing to the supply shortage include a decline in Spain's construction industry post-Eurozone crisis, increased material costs after Covid, and a lack of political consensus on building. Demographic changes, particularly the arrival of migrants, have also driven the creation of approximately 1.2 million new households between 2021 and 2025, while new home construction has not kept pace.