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Spain: Tourism boom worsens housing crisis

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Markus Böhnisch
April 30, 2025

Spain's tourism sector continues to grow, with 90 million visitors last year. And the country's population is also at record levels. The economy is the envy of Europe. But there's a downside to that growth: an increasing housing shortage.

Malaga faces rising rents, worsened by the rapid increase in AirBnB apartments, forcing residents like Tiziana Procopio to share housing or move to nearby villages.

The Spanish government is using EU funding to build new apartments, including social housing in cities like Madrid, but demand still far exceeds supply, with 230,000 new households forming annually.

Marinaleda stands out with its unique social housing model, where residents pay symbolic rents and actively contribute to construction, reflecting the mayor’s belief that housing is a right, not a business.

Spain’s housing crisis is intensified by slow infrastructure development, high construction costs, and labor shortages, making quick solutions difficult to implement.

Political collaboration is essential to address Spain’s housing challenges, as growing frustration among renters poses a significant issue for the government.

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