The supply of rental housing in Spain has decreased by 80,000 properties in the last year

The supply of rental housing in Spain has experienced a significant decrease in the last year, with nearly 80,000 fewer properties available on the market. This decline, which represents one of the largest falls in recent years, is having a significant impact on prices of properties for sale in Fuengirola and also in accessibility for tenants. Below, we analyze the main causes and consequences of this phenomenon.

Causes of the reduction in supply

Regulatory and fiscal changes

Recent legislative changes, such as limits on rental prices in stressed areas, have generated uncertainty among property owners. Many fear a loss of profitability or greater difficulties in managing their properties, which has led some to withdraw their properties from the market or sell them.

Increased demand for home ownership

Following the pandemic, a greater number of families and young people have opted to buy a home instead of renting, driven by low mortgage interest rates. This has reduced the turnover of properties available for rent.

Impact of tourism and holiday rentals

 In cities such as Madrid, Barcelona or Malaga, many owners have redirected their homes to the tourist rental market, attracted by the possibility of obtaining greater profits. This has further reduced the supply of residential rentals.

Insufficient rehabilitation of properties

Despite the existence of thousands of empty or dilapidated homes, the lack of clear incentives for the rehabilitation and use of these properties remains a structural problem.

Consequences of the decrease in supply

Rising rental prices

With fewer homes available, competition between tenants has intensified, driving up prices in many cities and making it difficult to access affordable housing. In some areas, rents have reached historic highs.

Greater vulnerability of tenants

This imbalance has particularly affected young people, families and vulnerable groups, who face greater difficulties in finding housing in decent conditions.

Movement to peripheral areas

The rise in rent in urban centres has forced many people to move to the periphery, increasing travel times and generating problems of congestion in infrastructure.

Possible solutions

To stop this trend, it is essential to stimulate the rental market through tax reductions for owners, measures that reduce legislative uncertainty and programs to rehabilitate empty homes. Only with a comprehensive approach will it be possible to it is possible to guarantee a sufficient and accessible supply for all.