Spain is currently experiencing its first general strike in 14 years, with thousands taking to the streets across various cities to protest against the housing crisis and the erosion of purchasing power, factors that protesters argue are severely compromising their quality of life. Under the rallying cry of “Salaries, housing, prices,” workers, students, union members, politicians, and public figures from diverse sectors are participating in this atypical strike, which marks the first instance of a general strike being called in response to a housing crisis in the country.
The demonstrators contend that the rapid and disproportionate rise in rental and property prices, coupled with the limited availability of public and social housing and the increasing number of evictions, undermines the universal right to access adequate and dignified housing. They also highlight the escalating cost of living and public services, alongside stagnant wage growth, which further exacerbates the economic challenges faced by the populace.
In light of this situation, the participants are calling on the government to implement urgent measures to curb real estate speculation, impose limits on rental and property prices, increase wages, and take direct action to control inflation.
Structural Issues in the Housing Market
The housing crisis in Spain is rooted in structural issues. While the situation is often linked to the rise of digital platforms like Airbnb, which have driven up property prices, its origins lie in the gradual deterioration of socio-economic conditions that have made accessing housing increasingly difficult. Since the real estate crisis of 2008, Spain has faced a mismatch between the supply of properties and the growing demand, particularly in major cities and key tourist destinations that offer a significant proportion of job opportunities.
The Annual Report 2025 from the Bank of Spain indicates that between 2021 and 2025, the country accumulated a deficit of around 750,000 housing units, as the formation of new households outpaced the construction of new properties. The report estimates that last year alone saw the establishment of approximately 240,000 households, while the number of completed homes was around 92,000. Notably, cities such as Madrid, Barcelona, Alicante, Valencia, Murcia, and Málaga accounted for 52.5% of this deficit.
This imbalance has been exacerbated by population growth, with Spain’s population increasing by 0.9% last year, largely due to migration flows, further straining a housing market already struggling to meet demand. Consequently, one immediate result has been the soaring costs of properties, both for sale and rent. As of the second quarter of this year, estimates by the National Statistics Institute (INE) show that property sales prices increased by 12.9% year-on-year for used homes and by 7.4% for new ones.
Rising Living Costs Amid Stagnant Wages
Similarly, the average rental price surged from €10.80 per square metre in December 2019 to €14.40 in December 2025, representing a 33.3% increase according to data from Idealista. The continued upward trend in the real estate market has significantly raised living costs, making it increasingly difficult for many Spaniards to cope, especially given the limited growth in average salaries.
According to INE, the average gross monthly salary rose from €1,982.30 in 2019 to €2,385.60 in 2024, an approximate increase of 20.3%. However, during the same period, the cost of living surged by 22.3%, resulting in a decline in households’ purchasing power. In this context, rent remains a growing financial burden. Eurostat estimates that by 2025, 26.8% of Spanish households renting at market rates will allocate more than 40% of their gross income to cover housing costs and basic utilities.
These factors particularly affect the younger population, who are facing reduced opportunities for independence. According to the INE’s Living Conditions Survey, as of last year, 67.1% of individuals aged 18 to 34 were still living with their parents. Among those aged 26 to 34, 34.6% reported that their financial situation did not allow them to rent a home, while 12.7% indicated they could not afford to buy one.
The Impact of Short-Term Rental Platforms
The pressure on this demographic is intensified by the proliferation of short-term rental services like Airbnb. Their concentration in attractive tourist areas such as Málaga, Sevilla, Barcelona, and Madrid, which also host a significant number of job opportunities, reduces the availability of properties for permanent residents. This phenomenon was highlighted in a 2020 study published in the Journal of Urban Economics, which found that Airbnb operations led to an approximate 1.9% increase in rents and a 4.6% rise in property prices in Barcelona’s average presence areas.
The study noted that the effects were even more pronounced in areas with a high concentration of tourist accommodations. In the top 10% of neighbourhoods with the most Airbnb activity, researchers estimated rent increases of 7% and property price hikes of 17%. Thus, while Airbnb and similar platforms are not the root cause of Spain’s housing crisis, they do exacerbate it, particularly in cities with significant tourist activity. Despite efforts by national and local authorities to regulate these services and limit their impact on the housing market, the measures taken appear insufficient when faced with the broader structural factors driving the crisis.
Political Responses and Future Implications
Addressing the housing crisis comprehensively must become a political priority, especially with the upcoming general elections set for 29 November. Experts predict that this issue will be central to the electoral campaign, which begins shortly. However, questions remain regarding the ability of various political factions to tackle a structural problem that deteriorates living conditions, particularly for younger generations, who, amid an ageing population, will play a crucial role in the future of the Spanish economy.