Spain Grapples with Housing Crisis: Protests Erupt Amidst Soaring Rents and Shortages

Spain is currently facing a significant housing crisis, triggering widespread protests across the country. On April 5, large demonstrations took place in 40 cities as citizens voiced their concerns over rising rents and the scarcity of affordable housing. This situation arises amidst Spain's economic growth and a housing shortage, which has been intensified by a surge in tourism. In Madrid, the local tenants' union reported that over 150,000 protesters marched, expressing their dissatisfaction with the government's approach to balancing tourism and migration with the housing needs of its citizens. The imbalance between housing supply and demand has led to escalating prices, making it difficult for many to secure adequate housing. Data from Idealista indicates a concerning trend: average Spanish rents have doubled, and house prices have increased by 44% in the last decade. These increases have outpaced salary growth, creating a significant affordability gap. Furthermore, the supply of rental properties has decreased by half since the onset of the 2020 pandemic. Spain's appeal as a global tourist destination has contributed to the housing shortage. The country welcomed a record 94 million tourists in 2024, becoming the second most-visited country globally. The Bank of Spain estimates that this influx, combined with migration, has contributed to a housing deficit of 500,000 homes. The government is now exploring measures to address this crisis, including regulations on short-term rentals and incentives for new construction, aiming to strike a balance between tourism, resident needs and affordable living.