Spain | The housing shortage

The housing shortage is a complex problem, which is the subject of increasing attention and justified social, economic and political concern. Large segments of the population suffer from difficulties in accessing residential rental housing or homeownership, especially in large cities and high-demand areas.

Key points

• Key points:
• In 2018 and 2019, the creation of new housing and housing permits were similar and stood at around 100,000 homes. In 2023, the supply of new housing remained at those levels, while the creation of new homes has increased to close to 300,000.
• At the same time, there has been an increase in tourist apartments, which has competed with the housing demand from the growing resident population in Spain. The result of this growing imbalance has been the rise in prices.
• The shortage of buildable land is one of the causes of the housing shortage in Spain. Although cities have land to develop housing, the proportion of land ready to build is limited and the processes are excessively long and complex.
• Regulatory uncertainty is also a cause. Housing legislation has recently undergone major changes, altering property developers' development plans and rental supply.
• Addressing the housing supply problem in Spain requires learning from international success stories, with comprehensive and consistent long-term policies that reduce uncertainty, increase the returns and efficiency of the sector, and encourage real estate investment and rentals.

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