The 5th Pillar of the Welfare State: Housing in Spain

In Spanish society, housing is more than a basic need; it is a fundamental right. However, despite its importance, access to decent housing has become one of the greatest social challenges in the country.

2 December, Barcelona - With a bloated housing market and a growing rental crisis, many families are forced to choose between living in precarious conditions or spending a large part of their income on paying for a roof. Meanwhile, social housing remains an unfulfilled promise for many citizens.

The Reality of Housing in Spain

In Spain’s major cities, such as Madrid and Barcelona, rent prices have risen exponentially in recent years, and wages have failed to keep pace with this increase . Access to housing has become a luxury that many cannot afford. According to the latest report from the Bank of Spain, more than 30% of Spanish households spend more than 40% of their income on paying for housing , an alarming figure that reflects the growing economic inequality in the country.

Renting, in particular, has been the biggest challenge for young people, who see their options for emancipation becoming increasingly limited. According to the INE Living Conditions Survey, the emancipation rate of young Spaniards is among the lowest in Europe, which means that, despite the constant search for independence, many young people are forced to remain in the family home much longer than they would like.

According to data from the Idealista platform, rental prices in Spain have increased by 50% in the last five years , a figure that reflects speculation and a lack of control over the market.

Criticism of Public Housing

One of the great promises of the government, especially in the wake of the economic crisis of 2008, was the creation of a public housing stock that could offer affordable rents to those who could not access private housing. However, the reality is that the public housing stock has been insufficient, poorly managed and, in many cases, inaccessible to those who need it most.

Public housing projects are often hampered by budget shortages, bureaucracy and a lack of coordination between administrations. In many cases, the housing built is not affordable, as rents are too high for poor households. In addition, long waits for access to public housing force many to turn to the private market, where prices continue to rise.

An example of this is the case of the Sociedad Pública de Alquiler (SPA), a public body that was created with the intention of promoting the rental of affordable housing. However, the SPA failed to meet its objectives and ended up being dissolved due to its poor management and the high costs it generated. This failure left a feeling of distrust in public housing initiatives and did not contribute to solving the housing crisis that affects millions of people.

The Rental Price Crisis

One of the most worrying aspects of the housing crisis in Spain is the constant increase in rental prices. According to data from the Idealista platform, rental prices in Spain have increased by 50% in the last five years , a figure that reflects speculation and a lack of control over the market. In some cities, such as Madrid and Barcelona, the situation is even more dramatic, with rents exceeding 1,500 euros per month for medium-sized apartments.

This skyrocketing price hike has been particularly hard on young people and people in precarious jobs, who are unable to cope with the high cost of housing. The market has turned to tourist rentals, with platforms such as Airbnb snapping up homes that were previously intended for long-term rental. This has further reduced the supply of affordable housing and driven up prices.

Furthermore, the lack of regulation of the rental market has allowed landlords to raise prices without any kind of control, which has led to many people being forced to live in overcrowded conditions or in poor housing, without the guarantee that their rental contracts will be respected.

According to the INE Survey of Living Conditions, the emancipation rate of young Spaniards is among the lowest in Europe

The Social Gap in Access to Housing

The housing problem in Spain has also created a growing social gap. While housing prices continue to rise, the middle and lower classes are seeing their chances of accessing a decent home slip away. Social inequalities are worsening, and many families are trapped in a cycle of high and precarious rents that do not allow them to save or improve their living conditions.

The most vulnerable, such as single-parent families, migrants and the elderly, are the ones who suffer most from this crisis. For many of these people, access to affordable housing seems like a utopia. Public housing policies, which should be a pillar of the welfare state, fail to respond to their needs. In many cases, access to housing has become a matter of pure speculation and profit, which further aggravates social disparities.

The Need for Radical Change

To effectively address the housing crisis in Spain, a radical change in public policy is needed. It is not enough to build more housing; it is necessary to do so efficiently, guaranteeing affordable prices and promoting the construction of sustainable and quality housing. The creation of a public housing company, such as the one recently proposed, could be a positive step, but it must be accompanied by structural reforms that ensure that housing is an accessible right for all.

Furthermore, it is essential that the rental market be regulated more strictly, avoiding speculation and abuse by landlords. In this regard, it is key to promote social rentals and aid to tenants who need it most, ensuring that no citizen is displaced by exorbitant market prices.

Ultimately, the right to housing is a matter of social justice. Lack of access to decent housing affects not only those who cannot afford it, but society as a whole. Solving this crisis is not only an ethical imperative, but also an economic necessity to ensure social cohesion and the well-being of all citizens.

The housing crisis in Spain is an urgent social challenge that requires innovative and effective solutions. Access to decent housing must be considered an inalienable right, not a luxury. As long as public policies continue to fail to address the root causes of property speculation and the lack of affordable housing, millions of people will continue to struggle to find a decent home. Housing, as a pillar of the welfare state, must be at the centre of the political agenda to build a more just and cohesive society.