The intention was clear: to facilitate access to housing. But two years after the Housing Law was launched in May 2023, the reality of the rental market in Spain is a jar of cold water, a paradox that hurts: less supply and skyrocketing prices.
The numbers don't lie and paint a worrying picture. At the national level, the availability of rental housing has plummeted by 18% in 2024 compared to 2022. This figure alone is food for thought. But the fall is even more pronounced in some regions, revealing the areas most affected by this contraction.
Imagine a domino effect: Castilla-La Mancha is leading this decline with an impressive reduction of 37% of rental supply. It is closely followed by the Canary Islands, which has seen its rental options shrink by 33%. Catalonia and Madrid, two of the country's major economic engines, have not escaped the scissors either, with falls of 26% and 23% respectively. The Balearic Islands, a paradise also facing shortages, has experienced a reduction of 22%The decline was more moderate in Andalusia, but it was more moderate in Andalusia. 13% less housing available.
The direct result of this shortage? An unstoppable rise in prices. Across the country, the cost of rent has skyrocketed by 15.8% in 2024 compared to 2022. Most shockingly, in the areas where the controversial price caps have been applied (control areas), prices have risen even more, by 14,3%even surpassing the 12,3% increase in uncontrolled areas. Evidence that seems to contradict the spirit of the law.
Why are landlords withdrawing their properties from the traditional rental market? The answer, as the situation emerges, points to legal uncertainty, rent control restrictions and a sense of judicial insecurity, sometimes linked to occupancy. Against this backdrop, many are opting for more flexible and less regulated rental models.
And this is where Flexible Accommodation, in its seasonal or tourist rental modalities, is gaining ground. In cities such as Madrid, the 10% of the new rental offers are seasonal, and a 6% are touristic. In Barcelona, the figures are even more shocking: the 20% are seasonal rentals and the 10% are destined for tourism. Valencia ranks with a 15% seasonal and a 10% tourism, while Malaga recorded a 14% seasonal and a 12% for tourist use. A clear shift from traditional housing to Flexible Accommodation that offers other guarantees or attractions for the owner.
The immediate future does not look any brighter. Forecasts suggest that rental supply will continue to contract, and prices, unfortunately, will continue to rise. A situation that, as the sector rightly points out, has caused "the opposite effect to the one intended" by the law. A reality that requires an in-depth analysis and solutions that truly balance tenant protection with landlord confidence, if we want housing to stop being a labyrinth in Spain.
