International

Spain Approves €7 Billion Plan to Ease Housing Crisis

  • by- Zaid
  • Apr 22, 2026
Spain's government has approved a sweeping plan to alleviate the country's housing problem, one of Prime Minister Pedro Sanchez's main political vulnerabilities ahead of elections next year.
Spain Approves €7 Billion Plan to Ease Housing Crisis

April 22: The new plan is worth €7 billion ($8.23 billion) and triples government investment in public housing over the next four years.

Key Components

  • Public housing supply: 40% of funds (to grow supply – Spain lags behind European average)

  • Property renovations: 30% (including energy efficiency and building in depopulated areas)

  • Subsidies: 30% (with focus on young people)

Key Provisions

  • Subsidised housing cannot be reclassified after a few years

  • Help for young renters and home buyers

Housing Crisis Context

  • Housing costs in Spain rose nearly 13% year-on-year at the end of 2025 (Eurostat)

  • Spain ranks near bottom of OECD countries for public rental housing – under 2% of available supply

  • OECD average is 7%; France 14%; Britain 16%; Netherlands 34%

Expert View

Raluca Budian, associate director of the Observatory for Decent Housing at Esade business school: "It is a significant step forward. For the first time in decades, there is a serious budgetary commitment."

Official Statement

Housing Minister Isabel Rodriguez said: "The public is demanding an agreement to address the main problem currently affecting them."