The housing crisis was exacerbated by a boom in rental offers on platforms, such as Airbnb and Booking.com, which triggered a wave of protests across the country in recent weeks, according to Reuters.
According to official statistics, homelessness has risen by 24 per cent since 2012 to 28,000 people. Meanwhile, around 45 per cent of people living in rented accommodation are at risk of poverty or social exclusion, the highest rate in Europe, according to a report by the Bank of Spain.
According to the European Commission, homelessness has increased significantly across Europe over the past decade, but the scale of the problem in Spain is masked by young Spaniards choosing to live with their parents for longer.
More than 60 per cent of young people aged between 18 and 34 live in the family home, and between 2008 and 2022 Spain saw the fastest growth in the number of young people living with their parents among Europe’s largest economies.
Spain’s social housing stock accounts for just 1.5 per cent of all homes, compared to the European average of 9 per cent, according to the report. Competition for privately rented flats is fierce. According to the classifieds website Idealista, about 40 people respond to every advert in Madrid.
Problem solution
The Socialist government’s current housing plan will add 184,000 flats over the next three years. Prime Minister Pedro Sánchez stated in May that he would like the social housing stock to match the European average during his term ending in 2027. However, the Bank of Spain estimates that another 1.5 million homes are needed to reach that target.
According to official figures, the rate of housing construction of 90,000 units per year lags behind the growth in demand and is well below the 650,000 homes built in 2008. Housing Minister Isabel RodrÃguez GarcÃa said on Tuesday that the government had begun work on a new plan to reach the goal.
José Manuel Caballol, head of the Hogar Si foundation, said the housing crisis required a combination of private and public initiatives regarding social rents.
We need to be much more ambitious.
Big cities like Madrid also have to cope with migration from rural areas to urban centres where jobs are available. There are 48,000 people on the waiting list for social housing in Madrid. At the same time, an increase in the social housing stock does not seem likely to meet the growing demand.
Crisis escalates
A recent law designed to protect tenants’ rights has also had a chilling effect on owners considering long-term tenancies. It allows vulnerable people to remain in a property for up to two years without paying rent.
Moreover, landlords are demanding rent guarantees from tenants that the poorest people cannot provide. Others are moving into the lucrative short-term market, which is not governed by the same rules.
According to Idealista, the supply of long-term rentals fell by 15 per cent in the year to March, while short-term rentals, mainly for tourists, increased by 56 per cent in the year to March.
The crisis is so acute that Spanish cities are trying to restrict or phase out holiday flats. The Spanish government recently announced that it would create a register of seasonal accommodation and require justification for its temporary letting, thereby restricting short-term rentals.
In early July, thousands of demonstrators marched in the centre of Barcelona over the weekend to protest against mass tourism in the city. Protesters carried signs reading “Barcelona is not for sale” and “Tourists go home.” Some used water pistols against tourists dining outdoors in restaurants.
