Spain faces a significant homelessness challenge, with 28,552 people without a home. This figure marks a 25% rise since 2012, according to research published by the National Institute of Statistics last year. The majority are men, about 77%, though the number of women has grown by roughly 20% over the last decade. Homelessness affects people across all ages and nationalities, whether Spanish or foreign. Yet the data used to shape care generally accounts for those who receive services at health centers.
Third sector organizations and NGOs propose two main action streams. Housing First and Housing Leadership are both operating shelters and outreach centers that have shown meaningful progress. A study prepared by EY examines whether a single house is enough to address needs and outlines two approaches. Housing Leadership targets people facing homelessness for the first time, offering temporary shared housing and support. Housing First focuses on the most vulnerable groups living on the streets, offering immediate individual housing and long-term support.
One of the early initiatives in Spain began in 2014, the Habitat Program. Supported by the non-profit Hogar Sí, it served 152 individuals facing mental health issues, addictions, or disabilities. The results included reductions in begging, victimization, and discrimination, with improvements in overall living conditions.
Solving the problem with numbers
According to the EY report, three homeless people could be housed in a single residence. The national challenge could be addressed with about 10,000 units and an investment of around 1.2 billion euros, equating to roughly 100,000 euros per home. If debt financing is used for purchases, the required amount could drop to approximately 480 to 600 million euros. It is emphasized that funding can come from a mix of monetary contributions, subsidies, and asset contributions from various owners or management groups.
Beyond construction costs, ongoing expenses include rental fees, maintenance, and resident support. The EY projection suggests that 151 to 175 million euros per year should be allocated for these costs. This would yield a return on investment for property owners in the range of 6% to 8%, with staff salaries around 39,000 euros per employee.
Addressing homelessness in Spain does not require building new houses alone. There are about 3.4 million vacant homes, meaning the stock exists if the system does not need full rehabilitation. Investors may find this a profitable opportunity with strong ESG prospects. EY notes that some of their own surplus stock was used in these solutions, and they have observed market challenges in selling those assets. Both individuals and large funds are seen as potential participants in this program.
What does it take to solve homelessness?
The EY study identifies four key actors for the Housing First solution: property owners, tenants, residents, and support services. House owners can be NGOs, public administrations, private individuals, institutions, or investment vehicles created for this purpose. Examples include Primero H, which is expected to go public, and Techo, which has already raised a 22 million buyout for housing projects. Tenants will pay below-market rents to help fund social housing managed by NGOs or public administrations. Residents receive accompaniment and support to improve their personal situations and ensure sustainable outcomes.
Pedro Cabrera, a sociology professor at the Pontifical University of Comillas and a leading expert on the topic, stressed the importance of coordination among all actors involved in social housing. During the study presentation, he warned that a lack of communication between housing authorities and social services can slow progress. Descriptive data from science also highlights that about 20% of those affected have higher levels of disability, and roughly 30% receive some form of wages, such as 300 to 400 euros, which underscores the need for integrated support services.