Why is Spain facing a housing crisis? | Explained
Spain is experiencing a severe housing crisis characterized by a massive shortfall of homes and rapidly rising rental costs. Protesters are calling for stronger tenant protections and restrictions on investment funds, as average salaries fail to keep pace with the cost of living.
Why it matters
The crisis highlights the growing tension between housing as a basic human right and the financialization of real estate by investment firms.
Last month, 87-year-old María del Carmen Abascal was evicted from her home of over seven decades. Her father first rented Abascal’s apartment in Madrid’s upscale Retiro neighbourhood in 1956. She stayed there under rent control after her parents died. The building changed ownership in 2018, and Abascal was offered the option to buy the unit. Since she couldn’t afford it, investment fund Urbagestión bought the unit and raised the rent from 500 euros to 2,650 euros. The fund then lowered the rent to 1,650 euros, but Abascal, who was living on pension funds, still could not afford it.
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