Spain must build 850,000 social rental homes to meet European standards

Spain lags behind Europe in social housing investment

by Lorraine Williamson
social housing Spain

Spain invests only €34 per inhabitant in social housing, significantly below the European average of €106, according to Infobae.com. Housing remains one of the biggest challenges for Spaniards, with rising prices making rent unaffordable for many families.

Accessibility to affordable housing remains an unresolved issue for Pedro Sánchez’s government, as Spain’s investment in social housing falls far behind other EU nations.

European comparison highlights disparities

A report from the Spanish Ministry of Housing reveals that Spain spends €34 per inhabitant on social housing, much less than countries like Germany, France, or Sweden, which spend five to eight times more. The European average stands at €106, more than triple Spain’s per capita investment.

Urgent need for more housing

To meet European standards, Spain needs to increase its social housing stock by 4.7%, requiring the construction of approximately 850,000 additional social rental homes. However, given the current pace of investment, achieving this target appears unrealistic.

Low spending on housing over time

Between 2007 and 2022, Spain invested €2.18 billion in social housing, averaging €46.9 per inhabitant annually—substantially less than countries like Luxembourg and Ireland.

Severe shortage of social housing

Across the EU, there are an average of 3.2 social rental homes per 100 inhabitants. In Spain, this figure is just 1.3, disproportionately affecting low-income households. The lack of government intervention means access to affordable housing remains difficult for many.

Currently, Spain has approximately 318,000 social rental homes. Of these, 197,000 are managed by autonomous communities and 121,000 by municipalities. This covers only 1.72% of the 18.5 million households in Spain. Many of these homes are outdated and in need of renovation, with poor maintenance further reducing their ability to meet growing demand.

European comparisons show the gap

By comparison, 29% of the housing stock in the Netherlands is designated for social rent. In Austria, this figure is 24%, in Denmark 20%, and in France 17%. These figures highlight the scale of Spain’s social housing shortfall.

The path forward

To bridge the gap with other European countries, Spain will need to significantly increase its investment in social housing. Without a substantial policy shift, the growing demand for affordable housing will continue to exacerbate social inequality and strain family incomes. Addressing this issue is crucial to improving living conditions and aligning with European standards.

Also read: By 2030, 80% of homes in Spain could be unsellable

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