European housing policy insights: Lessons for Spain’s market challenges

European housing policy insights: Lessons for Spain’s market challenges

Housing market

Fecha: marzo 2025

Miguel Ángel González Simón

SEFO, Spanish and International Economic & Financial Outlook, V. 14 N.º2 (March 2025)

Spain’s housing market faces mounting pressures, with demand consistently outstripping supply, particularly in major urban areas. In 2022, only one new home was built for every seven new households, exacerbating affordability challenges. While housing policy in the EU varies widely, key initiatives–such as Vienna’s strategic land management, the Netherlands’ social housing financing model, and Ireland’s rental guarantee scheme that integrates private  properties into the social housing stock through long-term agreements and tax incentives –offer valuable lessons for Spain. Addressing the country’s housing shortfall requires cutting excessive red tape, improving land-use policies, and fostering public-private partnerships. A coordinated approach across government levels and targeted incentives for affordable housing will be essential to ensuring long-term stability in the Spanish housing market.

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