Spain's Housing Crisis

Mass protests are taking place in Barcelona and other cities in Spain over the housing crisis and excessive tourism. [1, 2]

Causes of the protests

• Housing crisis: High rental prices and a lack of affordable housing. The trigger for the latest wave of demonstrations was the forced eviction of an 87-year-old woman in Madrid, which sparked outrage across the country.
• Mass tourism: Renting an apartment to tourists through the Airbnb platform makes housing unaffordable for local residents. [1, 2, 3]

Demonstrators’ demands

• Limit housing rental prices.
• Ban the eviction of vulnerable groups of the population.
• Reduce the number of tourist apartments and increase taxes on them. [1]

The contribution of tourism to Spain’s economy over the past 10 years shows a clear trend: steady growth up to 2019, a deep decline during the COVID-19 pandemic, and a rapid recovery to new historic records in 2024–2025. [1, 2]

Below are official data from Spain’s National Statistics Institute (INE), reflecting total tourism GDP (the industry’s direct and indirect contribution) in euros and its share of the country’s total GDP: [1, 2, 3]

Note on expenditure: If we consider only receipts from foreign tourists (exports of tourism services excluding domestic tourism by Spaniards), then in the record 2025 year they amounted to 134,7 billion euros (compared with 126 billion euros in 2024). [1]

Alternative estimates: Organizations such as WTTC (World Travel & Tourism Council) use a broader counting methodology, which makes their figures higher (for example, for 2024–2025 they estimate the combined share of the tourism and travel industry at 15.3%–15.9% of Spain’s total economy). [1, 2]

Meeting the protesters’ demands (strict rent controls, a ban on evictions, and the complete abolition of tourist apartments) would trigger a radical restructuring of Spain’s economy. For the majority of ordinary citizens, this would have dual consequences that can be assessed in specific figures and financial indicators.

Below is a comparative analysis of the advantages and disadvantages for the average Spaniard if these reforms are implemented.

Advantages for ordinary citizens (Direct benefits)

• Lower rental costs: The introduction of strict limits (such as expanding the scope of the existing Ley de Vivienda) and returning tourist housing to the long-term market could reduce rents by 15%–20% in oversaturated cities (Barcelona, Madrid). For an average family paying €1 000 per month, this means savings of €150 to €200 per month (€1 800–€2 400 per year).
• Increased housing supply for locals: The complete elimination of tourist licenses (for example, Barcelona’s plan to close all 10 000 tourist apartments by 2028) would return thousands of properties to the long-term rental market. This would make it easier for young people and families to find housing.
• Lower cost of living in tourist areas: A reduction in the flow of tourists would lead to prices in local supermarkets, cafés, and service businesses falling by 5%–10%, as businesses reorient themselves from wealthy tourists toward local residents.

Disadvantages for ordinary citizens (Hidden costs)

• Falling incomes and rising unemployment: Since tourism generates 13% of the country’s GDP (€218.5 billion), forcibly restricting it would lead to a contraction of the industry of at least 20%–30%. This means the economy would lose approximately €40–50 billion annually. As a result, the unemployment rate (which in Spain is already ~11.5%) could rise by 2–3 percentage points, leaving between 300 000 and 500 000 citizens employed in HoReCa, retail, and logistics without work.
• Shortage and a “black market” for rentals: Historical experience with similar restrictions in Berlin and Paris shows that strict price regulation forces owners to withdraw housing from the sales or rental market en masse (the legal long-term rental market could shrink by 30%–40%). For an ordinary citizen without a perfect credit history, renting housing officially would become nearly impossible, while off-the-books payments (“under the table”) would drive the actual price upward.
• Increased tax burden: A reduction in tourism revenues would automatically reduce collections of VAT (IVA) and corporate income tax. To cover the budget deficit and maintain the social sector, the state would be forced to raise taxes on ordinary citizens or increase public debt, resulting in an additional €300–€500 in tax burden for each working person per year.