A total of 40% of Spanish tenants spend more than 30% of their income on housing, surpassing the threshold that defines households as excessively overburdened in this area.
This is revealed by a report prepared by the ICTA-UAB, which analyzes the growing housing crisis in Spain and in eight other European countries. The study highlights how the rise in housing prices and poor housing quality are worsening structural inequalities throughout the country and warns about the progressive aging of the housing stock in rural areas.
The National Report on Housing Inequalities in Spain, prepared by the ICTA-UAB, notes that the percentage of income allocated to housing reaches 37% in the case of tenants in the free market. As a result, energy poverty affects up to 28% of Spanish households, one of the highest rates in the European Union.
The report, which is part of the European ReHousin project, examines housing conditions and provides a comprehensive analysis of how affordability, housing quality, and regional inequalities have evolved in Spain over the past thirty years. According to its findings, overcrowding and poor housing conditions—dampness, noise pollution, and lack of natural light—are disproportionately experienced by immigrants, low-income families, and urban tenants.
Furthermore, the increase in short-term tourist rentals is displacing long-term tenants. Up to 40% of rental listings in Barcelona are seasonal: contracts between one and eleven months that do not offer rent control or tenant protections under the Spanish Housing Law. This is in addition to thousands of properties with short-term tourist rental licenses, for stays of less than one month. Foreign investment, short-term and seasonal rentals, and tourism-driven gentrification have caused a surge in rental prices in urban centers such as Madrid, Barcelona, Palma de Mallorca, and Málaga.
"These numbers reflect the daily struggles of families, young people, and the elderly who are being pushed to the margins of the housing market," says Dr. Austin Matheney, ICTA-UAB researcher and lead author of the report. He also concludes that "housing should be a right, not a burden". The rise in interest rates and inflation has once again increased the risk of housing-related debt, especially for households with variable-rate mortgages. In 2024, mortgage defaults reached 3.4%, a concerning rise after years of relative stability.
Housing inequality in Spain is not evenly distributed. The most affected groups are:
- Young adults who cannot access homeownership or afford market rents.
- Immigrants, mostly from outside the EU, who spend up to 30% of their income on housing.
- Single-parent and large families face overcrowding and high rental costs.
- Economically inactive groups such as students, retirees, and the unemployed, who often live in poor-quality or unaffordable housing.
The shortage of public rental housing is another issue identified. "Only 1.5-2% of the total housing stock is public rental housing, and laws such as the Officially Protected Housing (VPO) law allowed subsidized housing to be sold on the private market after 10 to 30 years, affecting long-term affordability," notes Dr. Austin Matheney.
Not just an urban problem Although the issue seems to be centered in cities, rural areas also face multiple challenges. The aging of the housing stock, lack of infrastructure, and demographic decline make rural life difficult, especially for older people. In these areas, energy inefficiency is a major concern, increasing utility costs and contributing to the growing rate of energy poverty in Spain.
Environmental inequalities also affect the most vulnerable. In old buildings with poor insulation, families face cold winters, dampness, and high electricity bills. Nearly 1 in 5 Spanish households cannot keep their homes warm.
The authors argue that solving the housing crisis in Spain will require coordinated, multi-level reforms. Their main recommendations include: the need to expand public rental housing, especially in urban centers, and to reform tax incentives to discourage speculation while promoting long-term rentals. In addition, old housing should be renovated to improve energy efficiency, supported by technical and financial assistance. It is also urgent to regulate short-term rentals, particularly in high-demand areas, and to provide targeted subsidies for vulnerable households. Lastly, it is essential to develop regional strategies that address disparities between urban and rural areas.
Spain's current National Energy and Climate Plan (2021–2030) offers a starting point, aiming to improve the energy efficiency of 1.5 million homes by 2030. However, implementation must be accelerated and made more accessible to those who need it most, the report notes.
Titled "Contextualized analysis of the housing situation – Papers on (sub)national trends", this publication also explores shared pressures and country-specific dynamics. In Austria, the strong tradition of public housing remains key to affordability. In Hungary, the high level of private ownership and limited public intervention are generating growing inequalities. In France, historical socio-spatial divisions are reflected in the concentration of social housing in certain urban neighborhoods. In Italy, tourism pressures and heritage conservation policies strongly impact local housing markets.
In Norway, despite its strong welfare state, urban areas also face increasing difficulties in accessing housing. In Poland, there are sharp contrasts between declining towns and revitalized cities like Warsaw. In Switzerland, urban planning and the high number of tenants significantly influence housing access. Lastly, in the United Kingdom, the lack of social housing and evictions resulting from redevelopment are exacerbating problems of access to affordable housing.
Article reference: ReHousIn
