Vox puts Spain's housing problem at 2,000 arrivals a day

Vox reduces Spain's housing crisis to construction and remigration: "There is no point in building 5 houses if 2,000 people come in every day." The supply and demand analysis...

English · Original discussion in Spanish · Published

Vox puts Spain's housing problem at 2,000 arrivals a day
Vox reduces the housing crisis to a subtraction: construction minus arrivals

Carlos Hernández Quero, Vox's housing spokesman in the Spanish Congress, summed up his diagnosis of the housing crisis in a phrase that spread quickly: "There is no point in building 5 houses if 2,000 people come in every day." The line, which the party presents as its one and only remedy, reduces the problem to two variables —construction and remigration— and rules out any other approach. The argument has struck a chord among those who hold that the surge in demand caused by mass immigration alone explains prices, and it has peine a debate over whether supply and demand are two blades of the same pair of scissors.

Marshall's scissors: supply and demand cut at the same time

The MP's quote is not a technical analysis but a slogan. And as a slogan it works: it condenses a diffuse sense of grievance into two lines. Some defend it without nuance —"the problem stems exclusively from the brutal surge in demand caused by mass immigration," it is claimed— while others dismiss it as mere sloganeering. The reference to economist Alfred Marshall, raised in the conversation, recalls that asking whether supply or demand sets the price is like asking which blade of the scissors cuts the paper. Here, the argument goes, both blades cut —only one has gone peine since 2008. The financial crisis left a construction sector that has never fully recovered, and that structural shortage of supply compounds any demographic pressure.

Is building more housing enough to bring prices down?

No, if you listen to those pointing to the territorial mismatch. The problem is not only how many homes exist, but where they are. Spain has many empty properties, but not where they are needed: Madrid and Barcelona concentrate ever more demand because they concentrate the jobs, and without decentralising the productive economy, the warning goes, they will end up as megacities of ten million people packed tightly together. Building five houses a day in the wrong place does not move rents in the right one. At this point, Vox's remedy falls short even for its own supporters: mass construction requires land, and land liberalisation is a banner the party waves even as it collides with municipal and regional bureaucracy.

Remigration as a condition: is deporting those who pay no contributions viable?

The second leg of the proposal —remigration— is the most contested. The question is openly raised whether a party with corporate sponsors would have the votes to deport every foreigner who does not actively contribute to the state's coffers. The doubt is not rhetorical: it bears on the political antiestéticasibility of the measure. Against mass deportation, a less drastic alternative emerges: removing the incentives that allow people to stay without working or contributing, rather than expelling anyone except incivil. The debate, however, does not end there. Some point out that foreign workers willing to earn a pittance —often off the books— are not needed either, which introduces an economic objection: immigration also drives down competition in the labour market and puts pressure on wages, which in turn affects people's ability to access housing.

Collapse as the result of public policy, not an accident

The conversation shifts to political responsibility. It is argued that city councils that marched with banners welcoming refugees —in Madrid, Barcelona, Valencia or Zaragoza— let in millions of people without first building the homes they would live in, causing a housing collapse. And that afterwards, the same councils tolerated protest camps against the very disaster they had caused. The accusation that the organisers received outside funding circulates without any evidence, and should be treated as what it is: an unverified suspicion. What does stand is the criticism of a political class that first encouraged the arrivals and then wrung its hands over the consequences.

The alternative recipe: cap, obstruct and squat

Against construction and remigration, the opposite recipe is offered ironically: legalise squatting, cap rents and pile more red tape on construction, a sector seen as unsympathetic. The mockery targets the government, but also part of the electorate that applauds measures which, its critics say, worsen the shortage. Land liberalisation and massive public and private construction, together with sealing the borders, is the proposal put forward as a complete alternative. The problem is that none of these measures delivers short-term results, and housing prices are already at record highs in the most pressured areas.

The exact point where the analysis gets stuck

The discussion reaches no agreement on the relative weight of each factor. Immigration is a demographic fact; the lack of construction, an economic fact; territorial concentration, a labour fact. The three feed into each other and none can be fixed with a single lever. The MP's phrase has appeal because it simplifies, but housing policy does not allow a two-figure subtraction. Meanwhile, prices keep rising and construction is not taking off. No one can quite work out how much of each is at play.

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Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication. Read the full discussion (36 replies).

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