Thousands protest against housing crisis in Spain, demand 50% reduction in rents

Tens and thousands of people staged demonstrations across Spain to protect against the housing crisis in the country and demand access to affordable homes. The Organisers of these protests claim that up to 150,000 joined the protest in Madrid, while smaller demonstrations were held in about 40 cities nationwide.

The protesters were seen chanting “End the housing racket” and “Landlords are guilty, the government is responsible,” The Guardian reported.

Valeria Racu, a Madrid tenants’ union spokesperson, called for rent strikes in several Catalan coastal towns. “This is the beginning of the end of the housing business,” Racu said. “The beginning of a better society, without landlordism and this parasitical system that devours our salaries and our resources,” he said.

The union argued that 1.4 million Spanish households spend more than 30 per cent of their income on housing, 200,000 families more than 10 years ago. The housing crisis has become one of the major social issues in Spain as a combination of property speculation and tourist apartments shot up rents.

Youngsters face the brunt

Government statistics suggest that there are at least 15,000 illegal tourist apartments in Madrid, while in Barcelona, the city council says it will not renew the existing 10,000 tourist apartment licences when they expire in 2028. What was a problem initially limited to areas with a high concentration of tourists has become an issue across the country.

The young population of Spain were hit the hardest as housing costs have soared while salaries remain stagnant. A study published by the Spanish Youth Council showed that a lack of affordable housing meant that last year 85 per cent of young people under 30 were still living with their parents. The protests in Barcelona demanded a 50 per cent reduction in rents, indefinite leases and an end to property speculation.

“The housing game is rigged in favour of anyone with assets while tax incentives encourage them to acquire more and more property,” Jaime Palomera of the Barcelona Urban Research Institute and the author of El Secuestro de la Vivienda (The Kidnapping of Housing) told The Guardian.

“The rich have got richer since the financial crash in 2008 and the Covid crisis and they have used this wealth to buy more and more property, constantly driving up prices and increasing inequality.”

“The fact is that property offers a better return than other investments. We have an economic model that encourages investment in assets that don’t create any value but simply use rent as a way of sucking money out of the middle classes,” Palomera furthered.

The author suggested that the solution to this crisis is to tax those who own multiple properties. He went on to cite examples of countries like Singapore, where the state offers financial support to first-time buyers but imposes an ascending tax regime on second and subsequent homes.

With inputs from agencies.