The major promoters of affordable housing in Spain are large private developers, surpassing the scale of public administrations. From 1976 to 2022, private sector builders delivered 3.27 million homes with some form of public protection, accounting for 85% of all units brought to market during that period, according to the Housing problem has a solution report by the Real Estate Developers Association of Madrid (Asprima).
It is important to note that these more than three million residences did not cease to be public housing, but rather never belonged to the Administration in the first place, the study explains. In the last five years alone, between 2018 and 2022, private companies promoted 32,572 properties while the public sector promoted 7,060, meaning private efforts were about 3.6 times higher in that timeframe.
To meet current demand, Spain must return to a level of affordable housing production above 75,000 homes annually, according to Asprima. The association is calling for a National Housing Pact that governments can adopt to create a long-term policy framework, expand access for the middle class, support emancipation at a younger age, and help lift birth rates.
As it does not produce bubble protective casing
Following the housing market crash, affordable housing output fell sharply. In 2013, 53,000 properties were handed over with some form of public protection. By contrast, from 2014 to 2022, the average annual release dwindled to about 8,300 units.
Of course, the completion of 9,221 subsidized homes in 2022 does not align with the average of roughly 79,000 homes per year that were available to younger generations between 1980 and 2010. Those historical figures helped keep housing accessible, even as prices shifted, with the Asprima report noting that many homes remained affordable for the middle class at rates below free-market housing.
Madrid as a fortress for affordable housing
Madrid has land under development capable of hosting about 270,000 residences. In recent years, it has managed to sustain or retain land development investments in the capital, according to Carolina Roca, president of Asprima, who spoke during the report’s presentation.
Approximately 70,000 of these 270,000 units could be brought on line in the near to mid-term. Half of them, about 35,000, would include some form of public protection with a capped maximum price. The plan is to place these homes on the market, but a clear framework on land legalities and a process to update maximum sale prices, along with the necessary financial and labor structure, will shape the timeline and execution, according to Roca.
Data from the Community of Madrid show that in the last three years, about 14,000 subsidized homes have been built in the region through private initiatives, with 56% of these developments occurring in Spain overall.
Administrations do not allocate budget for housing
The General State Budget lists 992 million euros earmarked for housing policy. Asprima notes that while central governments allocate resources with various markings, they have not yet become a fully representative solution to the housing problem, which continues to affect a large portion of society.