The Failure of the Housing Law: Rent Prices in Spain Have Increased

The housing access crisis in Spain has intensified in recent years due to various structural, demographic, and regulatory factors. The insufficient supply of rental and owned housing, the rising construction costs, and the scarcity of developable land have created an increasingly strained market, especially affecting the most vulnerable sectors.

Impact of Intervention in the Real Estate Market

Policies that prioritize the "social function of property" over the right to it have led to a decrease in the supply of rental housing. Consequently, property owners have opted for more flexible and less regulated leasing models. In Barcelona, 30% of rental contracts signed in the last year correspond to these types of modalities, while in Madrid they represent 15% and in Málaga and Valencia, 13%.

Demographic Growth Drives Demand

The increase in population, mainly derived from migratory flows and concentration in certain geographical areas, has been key in the escalation of housing prices. According to the INE, Spain has gained 1.1 million inhabitants between 2021 and 2024, and the number of households has grown by more than 259,000 units annually. If this trend continues and considering the current low levels of construction, it is estimated that by 2035 Spain will need 2.5 million new homes.

Housing Production Is Insufficient

In Spain, between 80,000 and 100,000 homes are built annually, a figure well below the real need for 230,000 to 250,000 new homes. The lack of developable land has driven up plot prices in high-demand areas, adding to other factors such as the rising cost of materials and the shortage of skilled labor, which reduces the viability of new residential developments.

Shortage of Protected Housing and Need for a New Model

Spain has a scarce 2.5% of its housing stock allocated to official protection or affordable housing, far from the 9.3% average in the European Union. In 2006, slightly more than 97,000 protected homes were built, while in 2023 the figure has drastically fallen to 12,300 homes.

It is urgent to promote a protected housing model that guarantees security for investors, profitability for developers, and accessibility for middle incomes.

Unfulfilled Promises in the Government's Housing Plan

In April 2023, during the electoral campaign, the Government announced a plan to mobilize 184,000 affordable homes.

However, to date, none of them have been built, and the few existing homes that have been allocated to social rent represent less than 50% of what was promised.

Labor Shortage in Construction

The lack of generational replacement in the construction sector is worsening the housing production crisis. In 2007, there were 2.68 million workers in the sector, while in 2023 the figure fell to 1.5 million, despite the population increase. Of the ten most in-demand occupations, only three exceed 5% of unemployed young workers: laborers (7.5%), plumbers (8.8%), and electricians (12.8%).

Rise in Rental Prices and Deterioration of Available Stock

The rental price in Spain has risen by 13.2% in the last year, reflecting both the scarcity of supply and the increase in demand. Additionally, the aging of the housing stock is a growing challenge: 41.38% of homes in Spain are between 30 and 49 years old; 29.6% between 50 and 69 years old; and 29.9% over 70 years old. About 18.79% of main homes have insulation problems, highlighting the need for rehabilitation plans and improvement of energy efficiency with adequate tax incentives.