HOUSE PURCHASE AND RENT PRICES HAVE RISEN CONTINUOUSLY IN SPAIN SINCE 2014
Against a background of considerably robust housing demand ...
... and relative supply rigidity
In 2022-2023, net household formation far outstripped the number of new housing completions, a trend that is expected to continue in 2024-2025
HOUSING AFFORDABILITY DIFFICULTIES
– WHETHER FOR PURCHASE OR RENT – HAVE BECOME MORE PRONOUNCED IN RECENT YEARS
The adverse social and economic effects associated with housing affordability difficulties warrant the introduction of economic policy measures that seek to correct them
These difficulties are concentrated among lower-income households (young people and the immigrant population) and in certain geographical areas (urban and tourist areas) ...
... and are particularly marked in the rental segment: the proportion of tenants overburdened by their housing costs is high and well above the EU-27 average
CONSIDERING THE NATURE AND SCALE OF THE PROBLEM,
PUBLIC POLICIES SHOULD ...
Envisage a broad time horizon and involve all the various tiers of government with responsibility for housing
Assess the effects of the measures already adopted
Focus in particular on stimulating housing supply, especially in the rental market and social rentals
Prioritise resource allocation to the most vulnerable groups
Consider other aspects that have an impact on the housing market, such as the labour market, economic productivity and tax and transport policies