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Date Published: 28/10/2024

Population boom sparks housing crisis across Spain

Experts estimate that Spain will face a staggering deficit of nearly 500,000 homes by 2025

Spain is facing a housing crisis of epic proportions. With a population growth rate that's outpacing the construction of new homes, the country is struggling to provide enough housing for its residents. According to Eurostat data, Spain is the country in Europe whose population has grown the most over the past year, booming by 525,000 new inhabitants

This surge in population has put a strain on the housing market, particularly in large cities like Madrid and Barcelona. The demand for housing is higher than ever, but the supply is struggling to keep up. The construction sector, which was severely impacted when the global real estate bubble burst, is still recovering, and the number of new homes being built is simply not enough to keep up.

This means that the gap between the number of households and the number of homes on the market is growing wider by the day.

According to the National Institute of Statistics (INE), there were 19.3 million households in Spain as of July 1 this year, an increase of 130,300 compared to 2023. However, the number of new homes being built is not keeping pace. In 2023, only 80,473 homes were completed, a far cry from the 280,000 families that are expected to be formed each year over the next decade.

Worryingly, the stats show that if this trend continues as expected, Spain’s housing crisis could quickly escalate to a homelessness crisis.

In fact, the Bank of Spain estimates that the country will face a staggering deficit of nearly 500,000 homes by 2025.

As it is, the housing shortage is having far-reaching consequences, particularly for young people and low-income families. The average age of emancipation is increasing, and many young people are being forced to live with their parents for longer. The rise in prices is also causing a shortage of affordable housing, making it difficult for people to find a place to call home.

With the situation worsening, the Spanish government is under pressure to increase the supply of housing, but this is easier said than done and in the meantime, protests against ‘overtourism’ look set to continue indefinitely.

In other news: Spain's spookiest destinations: 10 terrifying places to celebrate Halloween

Image: Freepik

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