Spain is facing a severe housing crisis that has intensified into a primary social demand, triggering anticipatory legislative elections scheduled for late November. According to Diego, a 27-year-old resident who previously endured the capital’s rental market, the situation has become untenable for low-income earners. “Someone earning the minimum wage cannot live in Madrid,” he states, noting that his monthly rent in the Moratalaz district rose from 250 euros eight years ago to 400 euros last year, including utilities. Unable to sustain these costs, he has returned to live with his parents twenty kilometers outside the city center.
The crisis is rooted in a significant imbalance between housing supply and demand. The Bank of Spain estimates a deficit of 750,000 to 755,000 housing units relative to households formed since 2021. This shortage is exacerbated by demographic growth, with Spain’s population projected to reach nearly 50 million by 2026, while new construction fails to keep pace. Consequently, the affordability of housing has plummeted across the country.
Data from the Fossea Foundation, a private think tank specializing in Spain’s social analysis, indicates that 50.6% of renters lack the financial capacity to access the rental market. This figure defines those unable to secure housing where the rent does not exceed 30% of their income. The shortage is particularly acute in high-demand areas, including Barcelona, Malaga, and other coastal cities, where prices have surged without corresponding increases in wages. [1]
Carolina, spokesperson for the Madrid Tenants Union, argues that the issue extends beyond mere numbers, describing a market hijacked by speculation. “Housing is taken hostage by people who do not seek to live in it but to speculate,” she explains. She notes that numerous properties remain empty, are used for tourist accommodation, or are rented out on a seasonal or per-room basis. Additionally, the stock of social housing accounts for only 3% of Spain’s total real estate inventory, leaving vulnerable residents without a safety net. [1]
Tenants report increasingly hostile conditions in securing accommodation. Chloé, 32, arrived in Madrid in 2017 and witnessed the market tighten significantly over recent years. While she paid 750 euros for a 40-square-meter apartment in the Lavapiés neighborhood in 2021, the landlord increased the rent to 950 euros upon her departure. Similarly, Nadia, a 49-year-old waitress earning 1,332 euros a month, found herself without an apartment after her five-year lease ended and could not find another apartment on her salary. She now shares housing in Alcalá de Henares with her partner and his sister.
Despite a 2023 law abolishing agency fees, some agencies still collect those fees in cash, according to the report. Diego reports being asked for 10 to 15 euros just to view a property. Prospective tenants also face invasive vetting processes, required to disclose personal details such as pet ownership, children, and relationship status to secure a single room.
While 73% of the Spanish population owns their home, homeownership remains virtually inaccessible for younger generations. Rafael, 39, bought his property in Madrid during the pandemic when interest rates were low. Since then, his home’s value has appreciated by 65%, allowing him to pay installments that constitute no more than 35% of his salary. He attributes his success to years of living with his parents to save a 20% down payment, noting that prohibitive prices render purchasing a dream for most young people despite constitutional guarantees of housing as a fundamental right.
Raúl, a 35-year-old from Madrid, warns of a vicious cycle where high rental costs prevent saving for a down payment. “How do you manage with a rent of 1,200 euros and a salary of 1,500 euros? You cannot save, and therefore never buy,” he explains. The 2025 Emancipation Observatory of the Spanish Youth Council estimated that a young worker would need to dedicate 98.7% of their net salary to rent alone in 2025, highlighting the systemic barriers facing Spain’s youth.
As the story develops
Update
Madrid Tenants Describe a Rental Market Beyond Their Reach
In anticipation of Spain's legislative elections scheduled for November 29, the housing crisis has transformed from a social grievance into a central political battleground, triggering a nationwide general strike organized by tenants' unions. The mobilization, set for November 11, marks the first time in the country that rental unions have united to call for a stoppage specifically focused on housing rights. This day of protest comes amidst a deepening social divide and a political landscape fractured by economic disparities, with Prime Minister Pedro Sánchez campaigning on a promise to resolve the crisis in exchange for a renewed mandate. [2]
The groundwork for this mass mobilization is being laid in grassroots assemblies across Madrid. In Carabanchel, a working-class neighborhood in southwest Madrid, the Local Tenants' Union holds biweekly meetings to coordinate resistance against rising costs and predatory practices. At one such gathering in the ESPAC101 cultural center, tenants shared harrowing experiences of sudden rent hikes, eviction threats, and withheld deposits. Milagros, a 72-year-old resident, highlighted how her social housing unit, privatized in 2016, now subjects her to vertiginous utility increases. Her neighbor, Belén, faces an upcoming lease expiration with no realistic prospect of renewal at current market rates. [2]
Carolina, spokesperson for the Madrid Tenants Union, framed the struggle not as an individual financial difficulty but as a systemic failure where housing is treated as a speculative asset rather than a fundamental human right. She emphasized that the movement aims to shift power from institutions back to the people, opposing the 'rentier system' and the businesses and governments that support it. The union's strategy involves a bottom-up approach, utilizing daily meetings, leafleting, and social media campaigns to build a broad coalition. The symbolic imagery of the campaign—a raised fist clutching a set of keys—represents the reclaiming of security and belonging in a market that has largely excluded ordinary citizens. [2]
While the tenants' movement organizes locally, professional trade unions have largely joined the cause. Data from the Workers' Commissions Confederation (CCOO) indicates that more than 3,600 representative worker instances have aligned with the November 11 strike. This broad coalition suggests a significant potential for widespread disruption. Activists like Pedro, a member of the 'Acampada S26' encampment in Puerta del Sol, argue that sustained pressure is essential to force the government to address speculation, which many participants equate to theft. [2]
However, the movement is not without internal criticism and political polarization. Some segments of the population view the strike as politically motivated rather than economically necessary. Alvaro, a 35-year-old homeowner from Malaga, criticized the timing as opportunistic and accused professional unions of lacking independence due to their links with the Socialist government led by Pedro Sánchez. He argued that the country is too divided for such politically charged actions to be truly transverse. Despite these divisions, organizers like Santi emphasize that the mere act of organizing and spreading the message represents a significant step forward in changing public consciousness regarding the speculative nature of the housing market. [2]
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