Overview
- Banco de España puts the accumulated shortfall above 700,000 homes, with roughly half concentrated in Madrid, Barcelona, Valencia, Alicante and Málaga.
- Completions fell below 98,000 in 2024, while converting land to buildable plots typically takes 10–15 years, can stretch to 20, and is hard to finance.
- Home prices are rising clearly above 10% in 2025, making purchases increasingly out of reach for many households, particularly younger buyers.
- The construction sector faces a severe workforce gap, with the industry confederation estimating 700,000 additional workers are needed and urging a rapid training and immigration plan.
- Analysts call for a coordinated package to unlock supply—speeding permits, freeing more land, using public land with fiscal incentives for affordable housing, attracting labor, and curbing tourist homes and non‑resident foreign purchases—with INE projections warning the deficit could reach about 2.73 million by 2039 if current output persists.