Spain's €7bn housing plan

Spain approved a €7 billion housing plan on April 21 that locks more homes into public use and aims to slow rent pressure. (lamoncloa.gob.es) Prime Minister Pedro Sánchez’s government said the 2026-2030 State Housing Plan will expand public housing stock, curb speculation and tighten controls on who gets subsidised homes. Housing Minister Isabel Rodríguez said the ministry held more than 48 meetings with Spain’s regions while drafting it. (lamoncloa.gob.es) The plan triples public housing investment over four years, according to Euronews, with about 40% of the money earmarked for new public housing supply and 30% for renovations. The remaining funds are set aside for subsidies, with a focus on younger renters and buyers. (euronews.com) Spain is starting from a small base. Public rental housing makes up under 2% of available supply in Spain, compared with a 7% average across the Organisation for Economic Co-operation and Development, Euronews reported. (euronews.com) Housing costs have kept climbing even as Spain’s economy has grown. Euronews cited Eurostat data showing Spanish housing costs rose nearly 13% year on year at the end of 2025, while Idealista said asking rents rose 11.5% in 2024 to a record €13.5 per square metre in December. (euronews.com 1) (euronews.com 2) Tourism sits inside that housing fight. Euronews reported that Spain received a record 94 million international visitors in 2024, while Sánchez said non-European Union residents bought 27,000 properties in 2023 “not to live in” but “to make money from.” (euronews.com) Cities have already started moving on tourist accommodation. Barcelona said in June 2024 that it would eliminate tourist-flat licences by 2028, after freezing new licences in 2014 at about 10,000 units, according to Euronews. (euronews.com) Catalonia also raised its tourist tax from April 1, 2026. Idealista reported that Barcelona can now charge base rates as high as €7 a night for luxury hotels, plus a local surcharge of up to €8, and that 25% of the regional tourist-tax revenue is earmarked for housing policy. (idealista.com) Travel companies say visitors are adjusting, too. Booking.com said on April 20 that 85% of 32,500 travelers surveyed across 35 markets called more sustainable travel important or very important, while 43% said they plan to avoid crowds and 42% said they plan to travel out of season. (news.booking.com) Spain’s housing plan does not end the shortage on its own, and Rodríguez said there are “no quick fixes and no magic bullet.” The government’s bet is that more public housing, stricter rules and pressure on tourist demand can start changing a market that has outpaced wages for years. (lamoncloa.gob.es)