Spain's housing deficit doubles that of Italy, reaching 750,000 units

Spain is grappling with a substantial housing deficit, estimated at 750,000 units between 2021 and 2025, a figure nearly double that of Italy, according to a report by the Bank of Spain. While Spain created approximately 240,000 new households during this period, the growth in residential demand has been met with a slowdown in new housing construction.

The report highlights a stark contrast between demand and supply, noting a 9% reduction in the gross increase of the housing stock. In 2025, only 92,000 new homes were completed. This imbalance has led to a cumulative housing deficit of 3.7% in Spain, significantly higher than Italy's 1.5% and France's balanced situation. Germany was the only major European economy where housing production exceeded household creation during the same period.

David López Salido, Director General of Economics at the Bank of Spain, described the situation as a "substantial deficit" that is expected to grow due to demographic trends and household formation, coupled with ongoing supply restrictions. The report indicates that the surge in housing demand is not being matched by accelerated land development or urban planning.

Furthermore, the availability of housing is particularly scarce in economically active provinces like Madrid, Barcelona, and the Basque Country, where vacancy rates are as low as 14%. This scarcity could impact labor mobility and workforce needs. The report also points out Spain's low proportion of public housing, at just 1.5% of the total stock, placing it at the bottom of European rankings compared to countries like the Netherlands (34%) or Austria (23.6%). The high cost of rent, in addition to purchase difficulties, means that in major cities, renters would need 10 years of net income to buy a home, reducing the purchasing power of younger generations.

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There is a 'substantial deficit' of housing in Spain that will continue to increase due to demographic evolution and the pace of household creation, while supply restrictions remain.