The ongoing housing access challenge threads through the pre-election discourse. Major political parties have launched a series of measures they say will fix the problem. The government leans toward market regulation, while the opposition argues for a more competitive market that would boost supply. Who has the stronger case for Canadians and Americans seeking housing security?
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Buying and renting a home has become increasingly tough, especially in large cities. Access to loans and leases has tightened as landlords and financial institutions protect themselves against default. Guarantees, contracts, and payroll evidence are now routinely required. Renting remains a key option for many households that cannot afford to buy, yet it is getting harder every day. Rental prices rose about 10 percent last year, according to data from a major real estate portal.
The centerpiece of the most controversial provision of the Housing Law, pushed by the government and its partners, caps rent increases. In 2023, increases cannot exceed 2 percent; in 2024, they must stay below 3 percent, and a new index will determine the maximum allowed by the state through 2025. These rules tighten further in areas labeled “stressful.” As economist Fernando Castelló of the Polytechnic University of Valencia notes, such direct government intervention can disrupt the market, potentially causing shortages if owners decide not to list homes under onerous conditions. Limiting prices historically has not reduced prices, and it has reduced supply, according to Joan Carles Amaro, a professor at Esade.
Gonzalo Bernardos, a real estate expert, also questions price controls. He recalls Madrid and Barcelona during periods of price caps where owners earned less than maintenance costs, sold properties, and redirected investments elsewhere. The executive bill has drawn mixed reactions from tenant unions. They warn that the pact could permit implicit price hikes, open doors to fraud in seasonal contracts, and fail to resolve the housing crisis. They point to the danger of rent ceilings that do not account for new pricing pressures, and warn landlords could try to evict current tenants to raise rents for new occupants.
Tenant representatives group the costs of real estate services onto landlords, a legal gap that can allow agencies to bill prospective tenants for these services when the homeowner has contracted them. The People’s Party has rejected proposals seen as more intrusive, instead favoring incentives for owners, renters, and buyers. A series of measures proposed by the PP would lower property taxes for landlords with vacant homes, offer guarantees for rents or mortgages, and provide 1,000 euros to young buyers or renters under 35. Critics like Bernardos respond that such incentives risk pushing prices higher, since landlords know young tenants may be able to pay more. They also argue that unconditional 1,000-euro offers do little to ensure long-term housing affordability if mortgage access remains tight.
The scope of these measures is a frequent point of contention. Madrid’s “My First Home” program, launched last year, guarantees mortgages for young buyers with a budget of 18 million, and as of this week had facilitated hundreds of loans. Officials project the program could reach only a fraction of the region’s young residents. Bernardos views the scheme as a viable tool to improve accessibility, likening it to public-private loan programs used elsewhere.
increase bid
Increasing housing supply remains the central aim for all governments, though it does not automatically solve the problem. Castelló recalls how a housing bubble era saw rapid building followed by price surges. Most proposals focus on demand controls rather than supply expansion. The opposition contends that boosting competition will unlock market potential, but Castelló cautions that high demand requires enhanced supply to truly make housing affordable.
The government unveiled a broad plan at a recent congress: activate tens of thousands of Sareb homes, with many set aside for regional authorities to distribute. Analysts question whether Sareb currently holds enough stock to meet such targets, suggesting the figure may be aspirational. The government also announced a 4-billion-euro funding package inside ICO loan programs, supported by European funds, aimed at financing the construction of affordable rental housing and leveraging Sareb and Sepes efforts. Industry groups welcomed public finance but urged clarity on loan terms, interest, and affordability benchmarks.
PP proposals emphasize public-private collaboration to boost affordable rental stock. Regions and city authorities have been advancing projects with thousands of residences contracted or under construction, often in partnership with private developers. A notable initiative from the PP leadership includes creating an anti-slum office to protect homeowners and ensure resources are available should market pressures rise. Critics worry that without durable strategies, the cycle of demand outpacing supply will persist.
After the housing bubble, the struggle for access to housing persists. Ideas abound, but effective solutions require time and coordinated action. Esade’s Joan Carles Amaro cautions that price controls have historically failed to deliver lasting results, underscoring the need for a substantial increase in a mass housing stock to ease hidden demand.