Spain's housing crisis: Key points after the Maricarmen protests

Spain's housing crisis has been brought into sharp focus by the eviction of 87-year-old Maricarmen Abascal from her home in Madrid. For over 70 years, Maricarmen had been renting the property, but after a change in ownership, the rent was increased from 500 euros to 2,650 euros per month, later reduced to 1,650. Despite numerous attempts to prevent the eviction, Maricarmen was eventually evicted and taken to the hospital. The case has sparked widespread protests across the country.

Housing costs in Spain have been rising at an alarming rate. Purchase prices have been growing at double-digit rates, with a 12.2% year-on-year increase in the second quarter of 2026. Second-hand housing, which makes up the majority of the market, saw an even more significant increase of 12.9%, while new housing rose by 7.4%. Compared to the previous quarter, prices increased by another 3.4%.

Rent prices have also surged, with the average advertised rent reaching 15.1 euros per square meter in August 2026, a 5.8% increase from the previous year. These rising costs consume a substantial portion of many households' income, with 28.1% of renters spending more than 40% of their disposable income on housing in 2024, compared to the EU average of 19.2%.

The rise in housing prices and rents can be attributed to a fundamental imbalance in the housing market. Spain is experiencing population growth and increased demand for housing, but the construction of new homes has not kept pace. The Bank of Spain has highlighted a significant supply shortage, particularly in economically dynamic areas such as Madrid, Barcelona, and the islands. This concentration of housing shortage has led to intense competition for existing properties, driving up prices and rents.

Part of the issue stems from the aftermath of the previous housing boom. Following the 2008 financial crisis, Spain saw a surge in construction fueled by cheap credit. However, the bubble burst, leading to the disappearance of developers, banking problems, and a collapse in building activity. While residential construction recovered, it never reached the pre-crisis levels.

This has resulted in a housing market that is significantly different from the one before the financial crisis, with current production of new housing being more moderate than in previous expansionary cycles.

The concentration of ownership also plays a role in the housing crisis. Only 39% of rental dwellings are owned by individuals with a single property, while 61% belong to multi-landlords (those with two or more rental homes), legal persons, and public entities. Moreover, the stock held by multi-landlords has grown more rapidly, increasing by 39.9% between 2016 and 2023 compared to 30.4% for owners with a single rental home.

This concentration of ownership further exacerbates the housing shortage, as there are not enough homes available to meet the growing demand.