Spain Faces Housing Deficit of 750,000 Homes

Spain is facing a severe housing crisis characterized by a significant supply deficit and rising rental costs. The Bank of Spain estimates the national shortage is approximately 750,000 homes, a figure that could exceed one million by 2028. Between 2021 and 2025, the country added 1.2 million households but completed only 474,000 homes, leaving a cumulative deficit of at least 734,000 units.

Critics argue that the socialist government under Pedro Sanchez exacerbated the crisis through the 2023 Housing Law. This legislation introduced rent controls in stressed zones and increased restrictions on owners. These policies reportedly caused between 153,000 and 300,000 homes to vanish from the long-term rental market as owners shifted to seasonal rentals or left units vacant.

The shortage is most acute in six provinces: Madrid, Barcelona, Alicante, Valencia, Murcia, and Málaga. Research from CaixaBank, S.A. further indicates a deficit in home permits relative to household formation as of 2025.