Nearly half of all renters in Spain are left in severe poverty after paying their rent. According to a new report, a shocking one in three moves is forced due to unaffordable rent increases, while prices often outpace inflation.
The report, titled Living in Rent: Legally Guaranteed Insecurity is from the Barcelona Urban Research Institute (IDRA) and paints a grim picture of the rental market in Spain.
The housing crisis is squeezing Spanish renters from all angles. Take the story of María, a 38-year-old from Santa Cruz de Tenerife. After five years in her apartment, her landlord hiked the rent from €640 to €800—an increase she simply could not afford. She now finds herself paying more than half her salary for a new place. Her burden echoes throughout Spain, where a third of renters allocate over 50% of their income to housing.
According to IDRA, nearly 70% of renters in cities like Madrid and Barcelona spend more than the recommended 30% of their income on rent and utilities. Seasonal rental contracts, often exempt from price controls, are partly responsible for driving rent hikes above inflation rates in most agreements.
Severe poverty for half of renters
Perhaps the most alarming revelation in IDRA’s report is that half of all renters fall into severe poverty once they cover their housing costs. In Madrid, 55% of tenants have less than €561 per month left for living expenses after rent, with similar figures in Barcelona. The impact is stark: two-thirds of renters are overburdened, exceeding what experts consider financially sustainable.
The report also dismisses the concept of ‘inquilokupación’—a term some far-right voices have used to claim renters illegally stay without paying. IDRA’s data shows the vast majority of tenants (92%) pay rent on time. Instead of tackling these myths, the report emphasises that rent, often the last expense households stop paying, highlights the deep vulnerability faced by renters.
Policy recommendations: Learning from Europe
To address the housing crisis, IDRA has called for the introduction of indefinite rental contracts, similar to those seen in countries such as France, Germany, and the Netherlands. These contracts would automatically renew unless there is a serious need for the landlord or a significant breach of the contract. Such measures, IDRA argues, would help reduce residential insecurity without impacting rental supply. Stable contracts would also empower tenants to demand necessary maintenance without fear of non-renewal.
Furthermore, IDRA stresses the need for effective rent control linked to household income. The current rental cap system, introduced by the 2023 Housing Law, remains inadequate as it is based on high market prices and lacks proper enforcement. IDRA proposes a more nuanced approach, incorporating factors like property value, household income, and local unemployment rates to ensure affordability.
Moreover, IDRA recommends measures to prevent properties from being diverted towards speculative uses or insecure rental formats, such as seasonal or tourist rentals. It calls for better urban planning to curb the issuance of tourist licences in cities with a strained housing market, as well as tools for citizens and local authorities to report and penalise illegal rental practices, including temporary and ‘coliving’ arrangements that undermine tenant protections.
Also read: Balearics launch a scheme to provide affordable rentals from private owners