Spain is grappling with a severe housing crisis, rooted in a significant imbalance between supply and demand.

Since the 2008 financial crisis, the construction of new homes has lagged far behind the formation of new households, leading to skyrocketing prices in both sales and rentals.

The Bank of Spain estimates a shortfall of around 600,000 homes, exacerbating social discontent, particularly among young people.

Despite government efforts to boost affordable housing, the gap continues to widen, with only 90,000 new homes built annually against a demand for 330,000. This shortage is most acute in major urban centers like Madrid and Barcelona, where employment opportunities and population growth are highest.

Experts argue that increasing the housing supply is crucial to stabilizing prices, but challenges such as limited developable land and slow urban planning processes hinder progress.