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The Spanish real estate market is shifting towards becoming a country of tenants. High housing prices, limited supply, and the slow pace of new developments make it difficult for citizens to buy homes. In 2023, 2,384,573 rental contracts were signed — 4.9% more than the previous year and 55% more than in 2015. In 2024, 20% of the housing stock was allocated to rentals, the highest figure ever recorded, while 73.6% of homes were owned and 6% were ceded to family or friends.

The tenant profile has also changed: the average age has risen to 36 years, an 11.9% increase since 2020. This results from the imbalance between supply and demand after the Housing Law took effect, reducing demand by 27.6% but increasing supply by 34.3%. Nevertheless, prices continue to rise: the most sought-after rent is around €766, while the average household income of renters is €895, leading 30.2% of demand to move to the outskirts.

Rental supply has fallen by 56% since 2020, with 14 consecutive quarters of decline. According to José Ramón Zurdo (ANA), interventionist policies have discouraged landlords, reducing supply and raising prices. Julián Salcedo (Real Estate Economists Forum) believes the Housing Law has created legal uncertainty and worsened a structural problem in a context where wages are insufficient for both buying and renting.

Legal insecurity is one of the main issues. Recovering a property after non-payment takes more than eight months, and illegal occupations have risen by 61% in ten years, reaching 16,426 reports in 2024. Meanwhile, evictions dropped to under 30,000, compared to nearly 70,000 a decade ago. The IEE warns that Spain ranks 22nd out of 37 OECD countriesin property rights, generating uncertainty and discouraging investment.

Young people are the most affected: they can neither buy nor rent due to high prices and strict requirements. Experts call for guarantees, financial backing, and public policies targeting this generation. Moreover, the traditional safe haven of “investing in property” is becoming unreachable. According to Helena Beunza (ASVAL), if renting continues to grow, it will change the wealth structure of families, who may start investing in funds or financial assets instead.

To reverse this situation, experts propose increasing supply through tax incentives, public-private partnerships, housing renovation, and simplified bureaucracy. FAI suggests using unused land and offering “soft loans”; the IEEpromotes affordable rentals; the ANA proposes incentives for home purchases to boost rental availability; and ASVALcalls for legal stability and predictability. All agree: only by increasing supply can the market be balanced and Spain avoid becoming a country of tenants.