Business · Economy · 17 hrs ago

Spain’s housing shortage is tightening the rental market

Spain’s housing shortage is tightening the rental market

Spain’s rental market is under pressure because too few homes are available for the number of people who need them.

From 2021 to 2025, 1.2 million new households formed, while fewer than 470,000 homes were completed.

Many people who would once have moved from renting to buying now remain renters, adding to competition for existing homes.

The share of households renting rose from 17.5% in 2018 to 20.2% in 2025, while long-term rental listings on Idealista fell from 903,000 to 510,000.

The piece argues that building more homes, including homes for people to buy, could ease pressure on rents by freeing up places for new renters.

New construction would take years, so it also calls for reconsidering rental controls and extensions and proposes public insurance against rent default to spread landlords’ risk.

The piece does not set out what policy changes will be made next.

Sources

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