Spain faces a serious challenge in its largest cities. After the 2008 housing bubble burst, more people chose to rent, while rising rents and a disconnection from wage growth pushed the average housing cost burden higher for families. According to idealista, households typically spend about 30 percent of their income on rent, but in high-demand markets the figure climbs well above that: around 33 percent in Madrid, 37 percent in Palma de Mallorca, and 40 percent in Barcelona. (Cited from idealista)
Average net income per household, based on data from the National Institute of Statistics, has risen by roughly 23.5 percent since 2015. Yet rent levels have climbed at the national level by nearly 74 percent, while salaries have not kept pace. Real estate data from Brains Real Estate notes that salaries are about three times higher in certain markets. This mismatch is not a purely universal accessibility problem, since housing supply remains adequate in many regions, but it creates real hurdles for low-income families in areas with strong demand. (Cited from INE and Brains Real Estate)
Juan Velayos stands out as one of the most experienced figures in the real estate sector. He now leads his own consultancy and investment practice within boutiqueJV20. The opinion voiced is clear: housing access is not only Spain’s biggest problem but one of the most significant issues facing the developed world today. David Martínez, CEO of Aedas Homes, emphasizes a tangible need for housing and cautions that its development requires external capital. Alejandra Mora, co-founder of Anheros, adds that the housing crisis is a broader European challenge, and notes that the European Commission has urged the European Parliament to elevate this issue within its 2024–2029 framework due to its impact on employment, social participation, and democratic health. (Cited from industry leaders)
Create more offers
Industry voices call for broader policy measures beyond clearer regulations. The goal is to expand the rental housing stock at affordable prices, addressing the current shortfall. Experts propose a public-private collaboration model that involves the administration granting land to private developers to create rental housing at pre-agreed, limited prices. The sentiment is clear: the real estate sector must take the lead, while the public sector provides the enabling framework. (Cited from industry commentary)
David Martínez supports the Live Plan initiative, a public-private cooperation program in the Community of Madrid, calling it a strong example of effective collaboration between sectors. This approach enables developers to access public lands and bring affordable rental housing to the market, particularly benefiting young people seeking affordable accommodation. The project is described as a sign of reliable implementation and a strong industrial partnership within the Spanish real estate sector. (Cited from program statements)
Alejandra Mora argues that Spain’s first priority is to formalize and standardize cooperation rules between public and private actors in affordable and social housing. The terms of collaboration must be clear, with owners and managers agreeing on acceptable returns and workable legal structures. Not all capital seeks superficial rights or retroactive privileges. The administration must ensure the necessary support, budget, governance, and maintenance of the housing stock. As a comparison, the annual budget for Vienna’s city government is cited to illustrate the scale required for sustained results. The discussion also covers harmonizing regulations with other European nations such as the United Kingdom, the Netherlands, Austria, and Germany, which already have established social housing frameworks and public financing channels. Mora further notes that limited benefits and cross-border financing models exist in successful European examples. (Cited from Mora and Anheros)
Mora is seeking funding from both public and private sources. She notes that in the United Kingdom there are about 1,300 associations delivering social and affordable housing to around 11 percent of the population. These initiatives rarely originate from traditional property investment funds, and may rely on philanthropic donations or long-running public budgets to get started. The aim is to keep housing as a stable, investable sector that can address the current budget gap in Spain and Europe, even if returns may not be double-digit. (Cited from Mora and UK examples)
In terms of supply, experts stress that new housing requires more than just building; it needs access to sufficient raw materials, especially land. Better planning tools and policies are necessary to bring more land to market. Without additional land and sensible planning, prices fail to respond to demand – a situation critics describe as a major political shortfall. The real estate leaders emphasize that boosting supply and land availability would help bring down prices and relieve the broader political pressure tied to housing. (Cited from industry leaders)
David Martínez places responsibility on the public sector to support developers in land creation and to streamline the administrative process. He notes that government action should ensure security, predictability, and credibility in housing production. At the moment, legislative progress has stalled due to political changes and leadership shifts, affecting the pace of new housing laws. (Cited from Martínez)
More legal security for owners
Miriam Nasser, legal lead at Renters Insurance, highlights that supply remains constrained because many smaller property owners no longer want to rent out homes, due to shifting protections and unclear incentives. The root of the issue, she says, lies in a string of legal changes over recent years. A growing protectionist stance from tenants and a waning sense of protection for landlords contribute to the stalemate. (Cited from Nasser)
Several factors slow supply under the Housing Law, including greater obstacles during eviction proceedings when rent is unpaid or a lease expires. Nasser explains that such delays hamper possession recovery, increase owed rents, and create losses for landlords without compensation. (Cited from Nasser)
According to Nasser, the remedy involves new legal adjustments that shield homeowners with timely justice. This includes a framework to recover possession and overdue rents within a reasonable period, without unnecessary delays tied to tenant circumstances. She also calls for tax incentives to accompany rental income for landlords, along with social and economic support to help vulnerable tenants without shifting the burden to landlords. (Cited from Nasser)