Spain sees a 24% rise in the rate of homelessness by 24% since 2012 to 28,000 people, according to the official statistics. Meanwhile, the Bank of Spain reports also noted that 45% of people accommodating rented space are at the verge of social expulsion and poverty. The government has set a plan to add 184,000 units by 2027, however, the bank indicated additional homes would be needed. Many charity groups are seeking assistance from private sources to address the issue. Holidays are also one of the major factors adding to the situation and the cities are now limiting holiday apartments.
The official statistics of Spain noted that the number of homelessness has increased by 24% since 2012 to 28,000 people, while about 45% of people accommodating rented spaces are likely to experience poverty and social exclusion, the Bank of Spain report suggested. According to the European Commission, Europe has seen an increase in the rate of homelessness over the last decade. However, Spain is one of the countries to suffer major homelessness that gets masked by young Spaniards choosing to live with their parents for longer duration.
In addition, between 2018 to 2022, Spain had the fastest growing rate of young people with their parents among European economies and currently more than 60% of 18-34 year olds opt to live in the family house. The report added that the country's social housing stock is just 1.5% of all homes against 9% of a European average. In May, Prime Minister Pedro Sanchez said his target is to match the social housing stock of Spain with the European average under his leadership that ends in 2027. The Socialist government is planning to add 184,000 units over the next three years. However, the Bank of Spain indicated that an additional 1.5 million homes are needed to complete his goal.
Furthermore, due to the lack of sufficient support, many charity groups have turned to private sources to address the issue. Francisco Carillo, a 62-year-old Spaniard was recently provided with a new apartment by a charity - Mundo Justo. When he moved to Southern Spain for his throat cancer treatment, he couldn't afford the rental price and slept in the backroom of the movie theater for three years.
Mundo Justo is owned by Techno, a social investment fund that rents homes to charity groups addressing the issue of homelessness. It owns around 230 flats and works with 50 NGOs whose rent price is 30% below market rate. According to a chair of real investment trust, this is an opportunity for investors to secure returns while enhancing their environment, social and governance scores.
Diego Lozanzo, the CEO of Madrid housing agency said, the city is working to triple its social housing stock but will not be able to complete its target of 15,000 by 2030. He also criticized the law that protects tenants' rights to allow vulnerable people to reside in their apartments for two years without paying rent.
Landlords are now asking rent payment guarantees from tenants that the vulnerable people cannot provide, according to a media and others are offering lucrative short term rentals that do not fall under regulations, said Idealista. Adding to the issue, holidays have also worsened the situation as tourists accommodate housing over platforms such as Airbnb and Bookings.com that has sparked protests across the country in recent weeks. The issue is so critical that the cities have now started phasing out holiday apartments.
In conclusion, addressing the homelessness crisis in Spain requires a comprehensive and collaborative approach that goes beyond simply increasing social housing stock. It is crucial for the government, private investors, charity organizations, and communities to work together to create sustainable solutions that address not only housing availability, but also the underlying factors contributing to homelessness and housing insecurity in the country.
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