393,000 long-term rental homes lost in Spain as landlords rethink the market

In Spain, the number of long-term rental homes has dropped by 44 percent over the past seven years, according to new figures from property website Idealista. The decrease, from 902,664 listings in 2018 to 510,091 in 2025, represents the loss of approximately 393,000 homes. While the figures only account for active long-term rental advertisements, the dramatic decline raises questions about the fate of properties that were previously available to tenants.

Rental prices have risen, with Spanish rents increasing by 5.6 percent in September 2025 compared to the same period a year earlier, reaching an average of €15.10 per square metre. High-priced areas, such as Malaga province, have seen significant pressure, with the average rental cost now at €18.80 per square metre. This situation is particularly relevant for foreign residents, as they compete with Spanish households, international workers, students, and people moving to coastal areas for limited rental options.

Some of the demand is even spilling inland, with foreign renters exploring areas like Jaen and Badajoz, which were once considered unlikely choices for expat living. The decline in long-term rentals comes as Spain introduces stricter rules for the rental sector, including limits on rent increases, stronger tenant protection, and restrictions on other rental market aspects.

Critics argue that these regulations may discourage some landlords from listing their properties on the long-term rental market. Many landlords in Spain are private individuals who own just one rental property, with over 90 percent of homes rented as habitual residences belonging to private individuals. These owners may be more likely to reconsider renting out their properties due to the increased legal and financial risks associated with being a landlord.

The Spanish government disputes the claim that its policies are reducing the overall rental stock, stating that there are 380,000 more rented homes in 2025 than in 2021. However, the discrepancy between Idealista's figures and government data highlights the challenges facing Spain's rental market, as protecting tenants and encouraging landlords to maintain their properties remain critical concerns.