Spain

Spain's housing market in 2025 is dynamic, with strong demand and rising prices. Homeownership remains dominant at 73.7%, though it has dipped from 75.3% the previous year, while rental households have reached a record 26.5%. This shift reflects growing difficulty accessing home purchases, especially for young people in large cities.

Housing prices continue to climb: the most recent median price to buy an apartment is about €2,311 per sqm nationwide, with official figures reporting a slightly lower average of €1,972 per sqm in late 2024. Asking rents vary significantly by city, but recent data on median national rent per sqm is limited; in major cities, average monthly rents range from €850 (Alicante) to €1,490 (Barcelona).

Publicly owned housing in Spain is extremely limited, representing only about 2.5% of the total housing stock, far below the EU average. Most of what is termed "social housing" (vivienda protegida or VPO) is actually privately owned but regulated for affordability, with strict price and income eligibility controls, and is mainly for purchase, not rent. Only around 1–2% of Spain’s housing stock is true public rental housing, while social housing—defined by regulation and subsidy, not ownership—covers a slightly broader segment but remains scarce.

In summary, Spain’s market is characterized by high homeownership, rising prices, a growing rental sector, and minimal public housing, with social housing mostly meaning regulated, subsidized purchase rather than traditional public rental.

Spain faces a worsening housing crisis marked by an acute imbalance between supply and demand, with a shortfall of roughly 400,000–450,000 homes over recent years. The impact is most severe in urban economic hubs such as Madrid, Barcelona, Valencia, Alicante, and Málaga, where population growth and strong demand inflate property values. Nationwide, average purchase prices have increased by over 11% in the last year, while rents have risen sharply—by more than 12% between 2015 and 2023—and by up to 11% in 2024 alone.

The crisis is mainly due to delays in new construction, a lack of building land, and shortages of qualified workers, which make it impossible for supply to match demand. The number of rental properties has plummeted 57% over three years, partly because more homes are converted to tourist rentals, pushing the rental burden for city dwellers to as much as 30% of gross income.

Those most affected are young adults, renters in metropolitan areas, and low- and middle-income households. Competing factors—foreign buyers with higher spending power, strong labor markets, and rising wages—have further pushed prices upward, especially in coastal and island regions. The housing crunch hits not just first-time buyers and renters, but also long-term residents struggling to afford their homes as costs escalate.

The Spanish government’s current strategy to address affordable and sustainable housing focuses on increasing public housing supply, tightening regulation, offering financial incentives, and accelerating construction. New initiatives include launching a Public Housing Company to manage – and keep indefinitely – public housing, with a target to incorporate over 40,000 units, mainly sourced from SAREB and state land. A €6 billion loan and guarantee program is being deployed to support the construction of 25,000 new homes.

A national plan for housing industrialization (PERTE de Viviendas) has been announced, backed by €1.3 billion, aiming to scale modular and industrialized construction for lower-cost, sustainable homes. There is also a large-scale renovation program that provides grants for converting vacant properties into affordable rentals, requiring they remain in the affordable sector for at least 5 years.

To improve access for young people, a public guarantee system is being rolled out to de-risk landlords who rent to under-35s at reasonable rates. Additionally, a proposed 100% income tax exemption will incentivize private landlords to offer rentals at reference index prices. New rules also sharply restrict short-term tourist rentals, with a national property register to curb illegal listings and free up stock for residents.

The government is committed to significant financial investment, with €10 billion earmarked for housing until 2025, and a 2026 State Housing Plan forthcoming for further expansion.

Housing cooperatives in Spain are a small but growing segment of the housing market, offering an alternative to traditional ownership and rental. Typically organized as non-profit collectives, they allow members to access housing at cost price, participate in decisions, and enjoy stability with some flexibility. The sector has recently accelerated, especially in urban areas under pressure from speculative investment and high prices. By the end of 2025, there will be over 2,000 cooperative homes under the "use assignment" model, up from just 100 in 2020, with 179 projects active—most concentrated in Catalonia.

Despite this momentum, cooperative housing remains marginal, accounting for well below 1% of Spain’s total housing stock. Challenges include lack of specific national regulation, limited access to public land, and scarce financing options, with most support coming through scattered local initiatives rather than national policy. While some regional and municipal governments have experimented with public-cooperative partnerships and offered land or support, comprehensive governmental programs or tax incentives specific to cooperative housing are still absent. The national government’s broader housing strategy focuses on public and affordable housing, but direct promotion of cooperatives is limited beyond general support for collaborative or non-speculative models. Overall, cooperatives are viewed as an innovative model, but their scale and official backing remain modest.