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Spain Calls Housing an Economic Bottleneck as Public Alarm Deepens

A draft State Housing Plan blames a structural deficit of homes for the surge in prices.

Overview

  • An official barometer by GAD3 and the architecture technicians’ council, presented in the Senate, lists housing among the top two worries for 42% of Spaniards and 52% of renters.
  • The survey links the crisis to daily life: one in four reports stress or anxiety when searching for a home and about 20% reports fear of losing their current housing or episodes of depression.
  • Youth dependence is pronounced, with roughly 20% needing family money to move out and that share rising to 36% among people under 30.
  • The government’s draft royal decree for the 2026–2030 State Housing Plan describes housing as a drag on productivity and attributes rising costs to a structural shortage, higher building costs, labor gaps, scarce developable land, population growth, and alternative uses like tourist rentals.
  • Regional data underscore the strain in Galicia, where 22,500 leases were signed January–August, the average rent reached €589 year to date and €611.3 in August, six in ten new contracts exceed €500, and rent absorbed about 28.5% of net pay as more than one-third of city renters surpassed a 40% burden in 2023.