More than three-quarters of would-be homebuyers in Spain say they can’t afford to buy in the area where they need to live, according to a new report revealing the deepening housing crisis gripping the country.
The study, carried out by the National Federation of Estate Agency Associations (FAI) and unveiled at the FAI Conecta Congress in Toledo, found that 76.5% of potential buyers are effectively priced out of their local market – either due to soaring prices or a shortage of available homes.
Of those surveyed, 39% said they had been forced to give up on finding a home that meets their needs because of its high cost, while another 37% blamed a lack of supply.
The report paints a bleak picture of what FAI describes as a ‘structural failure’ in Spain’s housing system – one that is no longer limited to major cities, but increasingly affecting medium and small towns as well.
A family-sized dream out of reach
The typical Spanish buyer today is described as a 41-year-old couple with children, looking for a family home in their own city. The most sought-after price bracket ranges between €150,000 and €250,000, with an average size of 88 square metres.
Couples with children account for 41% of transactions, followed by couples without children (36%), single buyers (17%) and companies or investment groups (5%).
Most purchases – around 57% – are for primary residences, while 24% are investment properties and 18% are second homes. Nearly half of all buyers are trading up, moving from one home to another, while roughly a quarter are leaving the rental market for ownership. Another quarter are buying their first home after leaving their family home.
Mortgage dependency remains high
Despite Spain’s recent surge in cash-rich foreign buyers, most domestic purchasers still rely heavily on bank lending. The report found that 72% of buyers use a mortgage, often combined with personal savings (58%) or family help (14%). Just 28% can buy outright without borrowing.
For main homes, most buyers come from the same city (41%) or province (27%), showing strong local ties.
By contrast, 27% of second-home purchases are made by foreign buyers, almost evenly split between EU nationals and those from outside the bloc. Investment properties show a more mixed picture, with nearly 17% bought by international investors.
‘A structural problem that’s spreading’
FAI president Jose Maria Alfaro warned that Spain’s housing shortage has become ‘a structural problem’ that is ‘putting enormous pressure on the most in-demand segments, particularly first homes.’
Alfaro noted that the crisis is no longer confined to Madrid, Barcelona or Malaga, but has spread to smaller towns where affordability was once taken for granted.
FAI is calling for better coordination between government levels and an integrated housing strategy that aligns land use, tax and transport policies. The federation also urged more efficient management of EU recovery funds and insisted that housing-related tax revenue should be reinvested into public housing development.
A market out of balance
The study concludes that Spain’s housing market faces an ‘unprecedented mismatch’ between supply and real demand.
The federation estimates that one in three homes needed to stabilise the market simply doesn’t exist, and warns that without swift, coordinated action from both the public and private sectors, the situation will only worsen.
Read more Spanish property news at the Spanish Eye.
