The Bank of Spain warns of the impact on economic growth from housing problems

MadridHousing and productivity have focused theThe problem of housing access is one of the main social concerns –the Spanish government and some autonomous communities have long been working on formulas to alleviate this crisis

–. By population, the difficulties in accessing a property are mainly suffered by young and foreign people living in large cities, where the impact is greatest.

Once again, the Bank of Spain points to an "imbalance" between supply and demand that has led to upward price pressure, particularly on rents. However, the increase in these prices is concentrated in certain areas of the State, which generates "territorial dispersion." For example, the real price of housing between 2014 and 2025 has increased in Barcelona (2.8%), Madrid (4.8%), and Malaga (5.2%, due to the impact of tourist rentals), but has decreased in other locations.

While demand has continued to increase since 2021, supply has shown "restrictions." This has led to a housing deficit of 3.9% between 2021 and 2025 in Spain, well above that of France (0.02%) and Italy (1.5%), but below that of Portugal (7%). The Bank of Spain links these "restrictions" in supply to urban planning management and land regulations; to the productivity of the construction sector, which has few large companies and many small ones, and to the lack of labor. Also to the small public housing stock. The supervisory body also recommends some measures: from industrialized housing construction to an increase in public housing and the limitation of properties to residential use.

In terms of prices, the effort to buy a home has grown above household income. In Spain, the price-to-income ratio stands at 188.6%, while in the Euro area it is 110.3%. If we look at the years of income that young people or migrants – the most affected by the problem of housing shortage – need to buy a home in Spain, it is 6.8, although in cities like Madrid and Barcelona they would need 10 years. "It is dramatic," states the Bank of Spain. All this not only affects people's pockets, but their life trajectory, and conditions decisions such as emancipation and causes them to be pushed into the rental market.

Projections for 2026

In parallel with the presentation of the Annual Report 2025", highlighted López, who acknowledged that it "could affect" competitiveness.

However, the Bank of Spain highlights that "Spain contrasts within the euro area for its dynamism, compared to France, Germany, and Italy, which show signs of exhaustion," as indicated by the Director General of Economy of the Bank of Spain, David López Salido, during the presentation of the projections this Thursday. The labor market continues to be one of the elements that gives the most oxygen to the Spanish economy, with an increase in affiliates and a reduction in the unemployment rate, according to the Bank of Spain.

Faced with the economic shock of the war, the Spanish government approved a package of measures aimed precisely at alleviating the rise in prices. It concerns us", highlighted López, who acknowledged that it "may affect" competitiveness.

Faced with the economic shock of the war, the Spanish government approved a package of measures aimed precisely at alleviating the rise in prices. The royal decree expires this June 30, but the Ministry of Economy has already confirmed that it will approve a new one with more measures.