On housing, the Government is the one facing eviction (El ABC editorial)

The Spanish Government's housing policy, focused on intervention and regulation, has failed to increase supply and is driving up market prices, creating a problem that the Executive itself cannot solve.

Spain's housing crisis has reached a critical point, and the policies implemented by the government of **Pedro Sánchez** appear to have turned their back on their own objectives. Far from improving, the situation has become more complicated, leaving the Executive in a delicate position, almost as if it were itself being evicted by its own strategy.

## Supply stalls, demand grows

Since **Sánchez** became prime minister in July **2018**, Spain has experienced a notable demographic increase, adding almost **3.1 million inhabitants** to reach **49.8 million** in July **2026**. However, construction of new housing has not kept up. Last year, for example, around **240,000 households** were created, but only about **92,000 homes** were completed. The Banco de España estimates an accumulated deficit of some **755,000 homes** since **2021**, a figure that could exceed **one million in 2028**. This gap between need and actual supply is a structural problem that is difficult to solve with palliative measures.

## The impact on the rental market

The rental market is a clear reflection of this tension. The Banco de España has pointed out how prices for new contracts are soaring, while those who already rent a home enjoy relative stability. This creates a dual market: it protects current tenants but makes access to housing drastically more expensive for young people, newcomers and lower-income families. These groups are forced to delay moving out of the family home or to devote a disproportionate share of their income to rent. The banking supervisor warns that price caps, if not accompanied by an increase in supply, can discourage investment and further reduce the availability of rental housing.

## A balance broken by intervention

The Government seems unwilling to admit that its own policies are making the problem worse. The application of price caps, extraordinary extensions, growing regulatory uncertainty and legislation that places on landlords — mostly individuals with a single rental property — responsibilities that should belong to the State, are eroding incentives to offer stable and affordable rentals. Historically, balances have been sought. In **1985**, the government of **Felipe González** eliminated mandatory lease extensions to stimulate the construction of rental housing. Later, in **1994**, another socialist government established a reasonable regulatory framework as a necessary condition to boost supply. Today's PSOE, however, has dismantled that balance.

## Announcements that don't become reality

Announcements of major housing plans do not appear to be bearing the expected fruit either. In December **2023**, President **Sánchez** promised to mobilise all State resources to create **184,000 public and affordable rental homes**. Although he now boasts of having “mobilised” more than **120,000** — a figure open to broad interpretation — no clear accounting is offered of how many of these homes are actually finished and available. This opacity suggests a policy more focused on public image than on effectively solving the problem. The new decree, with aid for first-home deposits, could stimulate demand which, without adequate supply, will only overheat prices further. While the VAT cut for subsidised housing is a step in the right direction, the permanent classification of these homes could discourage private developers. The essential priority remains the same: build more, mobilise land, reduce administrative obstacles and guarantee legal certainty.

Spain faces a major housing challenge, but it is not unsolvable. Using individual cases to justify policies that, in practice, make access to the market harder is irresponsible. After eight years, the Government cannot present itself as a mere spectator of a crisis whose evolution bears its signature. Before creating new symbols, it should acknowledge the failure of its policies. The one truly facing eviction in this situation is the Government itself.