Spain’s Housing Law has made life for renters looking for a home much more difficult, according to a new a study.

While Pedro Sanchez’s flagship ‘Ley da La Vivienda’ helped slow rent increases in areas where it has been implemented, it has failed to improve access to housing because the supply of rental properties has fallen sharply.

That’s the finding of a report published by the Foundation for Applied Economic Studies (Fedea).

It argues that while rent controls have moderated prices in regulated areas, they have also reduced the number of homes available and intensified competition among tenants.

The study was carried out by Fernando Pinto, a professor of Applied Economics at Rey Juan Carlos University, and examines the impact of the Housing Law introduced in May 2023.

Rents rose more slowly in regulated areas

According to the report, rental prices increased less in Catalonia, where rent controls have been introduced, than in other parts of Spain.

The study focused largely on Catalonia, which became the first region in Spain to fully implement the rent-control measures allowed under the Housing Law.

As a result, economists regard the region as the main test case for assessing the law’s impact on rental prices and housing supply.

Between the first quarter of 2024 and the final quarter of 2025, rents rose by 5.7% in Barcelona and across Catalonia. By comparison, rents increased by 8.5% in Madrid and 10.8% nationwide.

The study found similar trends across all four Catalan provinces, where rental growth ranged from 3.1% to 5.7%, generally below levels recorded elsewhere in Spain.

Supply falls

However, Fedea says the moderation in prices has come at a cost.

The number of rental listings fell by 22.2% in Barcelona and 20.5% across Catalonia during the same period. In contrast, rental listings in Madrid increased by 3.9%.

The report notes that the decline in Catalonia was roughly double that seen in comparable non-regulated regions such as Comunidad Valenciana and Andalucia, where rental supply fell by around 10%.

As supply contracted, competition for available homes increased dramatically.

According to the study, properties in Barcelona attracted around four-and-a-half times more applicants than comparable homes in Madrid.

Researchers argue that this reflects a classic consequence of price controls, where demand exceeds supply because rents are held below market levels.

Existing tenants benefit most

Fedea concludes that the law has primarily benefited existing tenants rather than those trying to enter the rental market.

The report argues that while current tenants enjoy lower rent increases, prospective renters face fewer available properties and much greater competition.

As a result, landlords increasingly rely on other factors when selecting tenants, including perceived financial stability, personal preferences and immediate availability.

The study warns that access to housing is becoming more dependent on subjective selection criteria rather than price, creating additional barriers for newcomers to the market.

‘The moderation in rents for tenants already established in regulated areas coexists with a reduction in supply and increased competition for available properties,’ the report states.

Housing shortage

Fedea also rejects suggestions that the Housing Law is responsible for rising housing costs across Spain as a whole.

Researchers argue that rent controls apply only in a limited number of areas and therefore cannot explain national price trends.

Instead, the report points to a broader structural shortage of housing.

According to figures cited in the study, the Bank of Spain estimates that the country already faces a housing deficit of around 700,000 homes. BBVA forecasts that the shortfall could reach 800,000 properties by 2027.

The report concludes that the same lack of supply is driving price pressures in both the rental and property sales markets, regardless of the Housing Law.