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Madrid erupts in protest as Spain's housing crisis reaches boiling point

From Madrid's streets to Parliament, anger grows over skyrocketing housing costs. Will Spain's government act before the 2027 elections?

The image shows the Plaza Mayor in Madrid, Spain. It features a wall with text on it, a metal...
The image shows the Plaza Mayor in Madrid, Spain. It features a wall with text on it, a metal fence, a group of buildings with windows, some poles, a signboard, a street pole, some trees, and a cloudy sky.

Madrid erupts in protest as Spain's housing crisis reaches boiling point

Thousands of people marched through central Madrid on Sunday to protest soaring housing costs. The demonstration highlighted growing frustration over rising rents and unaffordable home prices across Spain. Protesters carried banners with slogans like ‘We want neighbours, not tourists’ as they called for stricter controls on short-term holiday rentals. Many blame the surge in tourist accommodations for pushing up rents in city centres.

Housing costs in Spain jumped nearly 13% year-on-year by the end of 2025, according to Eurostat. The country’s tradition of high homeownership and limited public rental housing has worsened the crisis, with demand—fuelled by tourism and immigration—driving prices even higher. The government recently approved a €7 billion plan to boost public housing and support young renters and buyers. However, a separate proposal to extend temporary rent freezes failed in Parliament. Meanwhile, pressure on Prime Minister Pedro Sánchez grows as housing remains a key issue ahead of the 2027 elections. For years, Spaniards have staged protests in cities nationwide over unaffordable living costs. Buying a home has become out of reach for many, particularly in major cities and coastal regions, where speculation and market pressures have inflated prices.

The latest rally in Madrid underscores the urgency of Spain’s housing crisis. With rents and property prices continuing to climb, the government faces mounting calls to address affordability before the next election.

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