Spain's housing crisis worsens with soaring rental prices

Spain is facing a severe housing crisis, with many young people struggling to afford homes. Experts say rising prices and a shortage of affordable options are major issues. In cities like Barcelona and Madrid, people report being pushed out of the property market. Data shows that in the EU, 1 in 10 households spends over 40% of their income on rent, especially in large cities. In Spain, rental prices surged by 11.5% in 2024, reaching a record high of €13.5 per square meter. In Madrid, prices have increased significantly, with the city center seeing rents jump by 21% in just a year. Housing prices across the EU have risen 54% since 2010, with Estonia and Lithuania seeing the highest increases. Many young people in Europe leave their parents' homes by age 26, but in Spain, the average age is 30. Political leaders are concerned that housing costs contribute to inequality in the country. The Spanish government is working on a new Housing Law to tackle these issues. The law includes rent caps in the areas that are most affected. Some officials believe that boosting the supply of public housing is essential. Currently, public housing only makes up 1% of total housing in Madrid, and advocates are calling for this figure to increase significantly. The crisis reflects broader problems across Europe. In 2021, the European Parliament recognized housing as a fundamental right. The issue is now a priority for the European Commission, which has formed special committees to find solutions. As policymakers discuss next steps, many citizens, especially younger ones, are left to navigate a challenging housing market.