The European Commission has urged Spain to urgently address its housing shortage, significantly impacting vulnerable households and young individuals. A new report highlights that social housing accounts for a mere one point five percent of the total housing stock in Spain, while the average across the European Union stands at nine percent. This situation exacerbates the housing crisis, with nearly thirty percent of Spaniards at risk of poverty struggling with the growing costs of housing.

The report points out that almost forty percent of Spanish tenants spend forty percent of their income on rent and utilities, a stark comparison to the twenty-seven percent average in the EU. Additionally, Spain faces a significant shortfall of around six hundred thousand homes. The Commission advocates for the release of public land, increased funding for affordable housing, and a reform of land laws to overcome existing obstacles.

There is an urgent need to address the labour shortage in the construction sector, as over fifty percent of builders report challenges in hiring staff. It is crucial to enhance the availability of affordable housing to alleviate increasing social pressure and facilitate labour market stability. The report warns that without adequate housing solutions, Spain may encounter severe economic repercussions, including hindrance to potential migration flows that sustain the labour market.

As housing prices have surged nearly fifty percent over the past decade, the Commission emphasizes that the access to affordable housing remains an escalating social challenge. The current scenario, with only fourteen point eight percent of young adults achieving independence, highlights the growing difficulties faced by younger generations. The report calls for more comprehensive support for housing solutions, especially in high-demand areas, to mitigate the ongoing crisis.