Spain’s housing market in 2025 is marked by strong demand, limited supply, and rapidly rising prices, especially in major cities like Madrid and Barcelona. The rental market has expanded, with 26.5% of households renting—a new national record—while home ownership stands at approximately 73–75%. The shift toward renting is due to difficulties accessing home ownership, particularly for young people in urban areas. The median price to rent an apartment nationwide is about 13–15 euros per square meter per month, while the median purchase price is around 2,150–2,200 euros per square meter. Rental prices surged by 30% since 2020, driven by a 56% collapse in long-term rental supply, particularly acute in cities like Barcelona and Madrid. Publicly owned housing plays a minimal role: only about 1.1% of rentals are designated as social housing, far below the EU average. Most social or publicly protected housing (Vivienda de Protección Pública, VPP) in Spain is for owner-occupancy, not long-term rent. Thus, public housing is not synonymous with social rental housing as found elsewhere in Europe. Eligibility for these homes varies by region and is typically reserved for low-income families, people with disabilities, or those unable to access market housing. Overall, Spain faces a deepening housing crisis, with rent and purchase affordability worsening, partially due to limited public intervention in the rental sector and prioritization of owner-occupied social housing.

Spain is experiencing an acute housing crisis characterized by a widening gap between demand and supply. The shortage of available housing—both new and existing—is especially severe in major cities and coastal hotspots, fueling frustration among locals and newcomers alike. Construction has lagged behind population growth, as annual new builds have not kept pace with demographic trends and urbanization. Contributing factors include a lack of buildable land, high construction costs, regulatory uncertainty, and growing competition from tourist rentals. These pressures have led to rapid increases in both rental and purchase prices, with the cost of rent rising significantly faster than wages and inflation. Large segments of the population are affected. Urban residents and young people face the greatest barriers accessing affordable housing, pushing a record 26.5% of Spanish households into the rental sector—an all-time high. As home ownership becomes less attainable, the rental market continues to strain under limited supply. Vulnerable groups such as immigrants, low-income families, and women heads of household are disproportionately impacted, often facing overcrowding, sharing arrangements, or eviction risks. In high-demand areas like Madrid and Barcelona, buying or renting a home is out of reach for many, while the influx of foreign buyers and tourists keeps prices elevated. The crisis is national in scope but felt most acutely in urban centers and popular regions.

Spain’s national government is responding to the housing affordability and sustainability crisis with a new strategic plan centered on expanding public intervention, innovative construction methods, and increased regulation. A new state-owned Public Housing Company will be responsible for developing, managing, and promoting affordable housing. The immediate target is to oversee over 3,300 housing units and 2 million square meters of land, with an aim to reach 40,000 units by integrating 13,000 units from SAREB (Spain’s “bad bank”) and additional stock. Key programs include the PERTE de Viviendas, a new strategic initiative to modernize the modular and industrial housing sector for faster, more affordable, and sustainable construction. Financial mechanisms feature public guarantees to support both owners and tenants—especially under-35s—and grants for converting vacant homes into affordable rentals. Owners offering rentals in line with a new Reference Price Index can receive full income tax exemptions, while significant tax reforms and stricter regulations on tourist rentals are planned. To limit speculative investment, a proposed 100% tax is set for non-EU buyers, and further inspection resources will target illegal tourist rentals. The government promises to maintain and expand state housing aid, with a major new National Housing Plan launching in 2026, focused on young people, the elderly, and vulnerable groups. The policy direction emphasizes more public housing, regulatory overhaul, and greater subsidies to address both affordability and supply, while also promoting sustainability through industrialized construction and building rehabilitation.

In Spain, the cooperative housing sector is experiencing significant growth, particularly as a response to the ongoing housing crisis. As of 2021, over 200 cooperatives managed more than 11,000 homes, showcasing a 70% increase in five years. This model offers reduced costs for acquiring homes, with potential savings of up to 20%. The government has shown interest in promoting cooperative housing, especially through initiatives like the Plan Estatal de Acceso a la Vivienda 2022-2025, which includes subventions for cooperative projects. Currently, there are over 50 cooperative housing projects in operation, with more than 100 under development. The sector's focus on affordability and community control resonates with young people and low-income families. However, cooperative housing still represents a small fraction of Spain's housing stock, with no specific national data available on its exact share. Policy efforts to promote cooperative housing include recognition of its role in providing affordable and sustainable housing solutions. The PSOE has proposed policies to support cooperative housing in use, urging the government to develop specific policies for its advancement. Despite these efforts, cooperative housing remains a relatively minor component compared to the broader housing market challenges in Spain.

In Spain, a variety of individuals and organizations are publicly committed to tackling the housing crisis and increasing affordable, sustainable housing, especially in urban centers. Prime Minister Pedro Sánchez and his government are at the forefront, leading the launch of the strategic PERTE de Viviendas program to promote innovative, industrialized, and modular construction, accelerate building timelines, and lower costs. The government is establishing a new Public Housing Company and expanding public-private partnerships, incentivizing both owners and tenants with tax exemptions and grants for affordable rentals, especially for youth and vulnerable groups. Key measures also include programs for rehabilitating vacant homes and stricter regulation of rental and development markets. Academia is involved through research and policy recommendations, exemplified by the Universidad CEU San Pablo and its CEU-CEFAS think tank, which has produced influential studies and advocates for structural reforms, administrative simplification, and enhanced public-private collaboration. Potential collaboration partners include: - Major NGOs like Cáritas and Fundación Hogar Sí, active in housing advocacy. - Startups and tech companies focused on modular construction and PropTech, such as Habitissimo and Badi. - Real estate developers and cooperatives advancing Build to Rent, coliving, and shared ownership models. - Academic institutions with urban policy expertise, notably CEU San Pablo and Universitat Politècnica de Catalunya. Public forums, EU dialogues, and cross-sector partnerships are being promoted to further address legal, financial, and social challenges, ensuring a more affordable and sustainable urban housing supply.