Spain launches €7bn public housing plan to tackle soaring rents and housing crisis
Spain's government on Tuesday approved a sweeping plan to alleviate the country's housing problem, one of Prime Minister Pedro Sánchez's main political vulnerabilities ahead of next year's elections.
Published on 22/04/2026 - 10:14 GMT+2
Rising rental and housing costs are pricing many Spaniards out of the market, despite a recent economic boom.
Incomes have failed to keep up, and analysts say tourism and population growth in cities driven by immigration have further strained supply.
The new plan, worth €7 billion, triples government investment in public housing over the next four years. It ensures that subsidised housing cannot be reclassified after a few years. It also includes help for young renters and home buyers.
"It is a significant step forward. For the first time in decades, there is a serious budgetary commitment," said Raluca Budian, associate director of the Observatory for Decent Housing at the Barcelona-based Esade business school.
About 40% of the money will be earmarked for increasing the supply of public housing, which Spain lacks compared to the European average.
In comparison, 30% will be set aside for property renovations, the government said. That will include funds for making homes more energy-efficient and building in depopulated parts of the country.
The rest will go toward subsidies, with a focus on young people.
"The public is demanding an agreement to address the main problem currently affecting them," Housing Minister Isabel Rodríguez said Tuesday. Housing routinely comes up as a top concern for Spanish citizens, according to state pollster CIS.
Housing costs in Spain rose nearly 13% year-on-year at the end of 2025, according to Eurostat.
Spain ranks near the bottom of Organisation for Economic Co-operation and Development countries with public housing for rent, with under 2% of available supply.
The OECD average is 7%. In France, it is 14%, Britain 16% and the Netherlands 34%.
In the past, Spain built housing with public funds that later passed into private ownership. Once they were sold, they disappeared from the public housing stock.
