The European Commission has urged Spain to address the country’s serious housing shortage by increasing the stock of public and affordable housing. The stock of social rental housing in Spain represents only 1.5% of the total, compared to the 9% average in the EU, and almost 40% of Spanish tenants currently spend 40% of their income on rent, compared to the 27% average in the EU. The Commission is relying on data from the Bank of Spain, which points to a shortage of at least 600,000 homes in Spain. This is no longer just a social problem; it has become a threat to the country’s economic growth.
On the other hand, the European Executive emphasizes that it would be positive for Spain to reform its Land Law to reduce the time required for granting building permits, provide greater legal stability, and eliminate the harmful excess of bureaucracy. Brussels also points to the need to reverse the growing labor shortage in the construction sector, given that many companies in the sector are having significant difficulty finding workers.
Brussels also highlights in its report that access to decent and affordable housing has become the greatest contemporary social challenge, especially for those with fewer resources, such as vulnerable households, pensioners, and young people. The document reveals a devastating fact: housing prices in Spain have increased by almost 50% since 2015, with no comparable coefficient in terms of household income levels.
One of the main drivers of this situation is the rise of certain tourism-related trends, which have led to an increasing number of homes being converted into holiday rentals. This change has led to a reduction in the supply of conventional rentals, particularly in large cities. For this reason, Brussels argues that it might make sense to provide more support for housing supply in stressed areas and for vulnerable people, if necessary by simplifying the regulatory framework.
