Thousands of demonstrators gathered in central Madrid on Sunday to protest rising housing costs, which have made homeownership unattainable for many Spaniards despite a recent economic boom. The protest highlights a housing crisis that has become a major political vulnerability for Prime Minister Pedro Sánchez ahead of the 2027 elections.
Spain traditionally has high homeownership rates and limited public rental housing. Analysts attribute the surge in rents to increased demand from tourism and immigration, as well as speculation. Protesters chanted slogans such as “We want neighbours, not tourists,” and called for stricter regulation of short-term tourist rentals.
Among the protesters was Estrella Baudu, a 28-year-old teacher living with her grandmother. “The situation for many young people like me is quite complicated, and it is very difficult to find a rental home due to the prices and low salaries,” she said. Fernando de los Santos, a 36-year-old university professor, added: “The government may say it is taking measures, but the reality for those of us who rent is that we are receiving notices from our landlords who want to evict us. The only thing they offer us are abusive price increases.”
Last month, Spain’s government approved a €7 billion plan to build more public housing over the next four years and provide support for young renters and buyers. However, a separate decree to extend temporary rent freezes failed to pass parliament, exposing the administration to further discontent. Housing costs rose nearly 13% year-on-year at the end of 2025, according to Eurostat, while the Bank of Spain estimates a shortfall of 700,000 homes.
The rally came a day after tens of thousands protested in Madrid against Sánchez over corruption allegations and dissatisfaction with the government. Spain received a record 97 million international tourists last year, fuelling demand for holiday rentals that activists say exacerbate the housing crisis.
