Spain: housing shortage as key problem
Affordable and cheap housing is lacking throughout Europe, but in Spain the situation is particularly dire. According to the Bank of Spain, 600,000 new homes would have to be built each year to meet the demand, but currently that figure stands at just 90,000. Moreover, house prices have risen by 42 percent since 2015 – almost twice as much as wages. How can the country overcome its housing crisis?
Society is losing its balance
The problem is complex, El Periódico de Catalunya comments:
“It is no longer just the weakest members of society who can no longer afford to rent a flat, let alone buy a property. ... The housing shortage is now a problem that threatens the social balance and a cause for one of the lowest birth rates in Europe. ... The problem can be resolved by tackling the reasons for the shrinking rental supply: there is too little social housing in Spain. ... But building more social housing alone won't resolve the housing shortage. ... The private sector must be encouraged to invest in rentals. But it's doing just the opposite. ... Rent controls make sense on the one hand, but they also reduce the private rental supply.”
Housing is a right, not a business
El País explains what needs to be done:
“The unrest is widespread and began with protests against tourism. ... Demonstrations are planned across the country this autumn under the slogan 'Housing is a right, not a business'. ... We need to regulate rents, put a stop to holiday lets and impose tax penalties on empty flats that are only used for speculation. ... This was the proposal put forward by [the left-wing ruling party] Sumar, which could not be discussed in Congress because [the Catalan separatist party] Junts voted against it. ... This is a bad precedent that can only be resolved if all parties involved act responsibly.”