Since 2010, home prices in the European Union have skyrocketed on average by more than 50%, while rents have risen 26%. Spain is one of the most intense hit countries, with rents increasing by up to 80% over the past decade.
This is a crisis caused by rare housing supply cocktails, expansion of construction costs, a boom in short-term rentals, and speculation from foreign investors.
“Barcelona is a city full of tourists. Rent is scary,” says longtime resident Rosario Castello, a tenant union member. Tenant Union.
She is facing eviction after the apartment block was purchased by Vandor Group, a subsidiary of UK investment fund Patron Capital.
“I lived in an apartment for 26 years,” explains Rosario. “It’s where I raised my kids and I have the bears in the brand of my clothes,” she says showing the dress she designs with her daughter.
“And Vander wants to take my house away from me.
The rosary is the last of the former tenants of the building. All other flats have been transformed into communal living spaces leased to foreigners on short-term leases.
“Vulture funds are buying a huge amount of the entire building for speculation, and they’re throwing us all away,” Castello storms. “We have to stop.”
Despite her lease expired, she refuses to leave and she is still in legal process with the owner who pays the rent.
“They provided me with a small fee to drive me out,” she explains.
Crossing Barcelona, residents like the Rosario are united together. Supported by Tenant Unionthey fight to avoid evictions and pressure public agencies to intervene.
“There is a lack of complete protection for housing rights,” exclaims Martina Jess Tora, another member of the tenant association. “We collectively defend this right.”
The Spanish government is trying to curb the crisis. The measures include plans to remove the 65,000 Airbnb list, raise taxes on property purchases by non-EU citizens, and implement rental caps.
“We’ve started regulating the rise in rental prices,” says Jaume Collboni, Mayor of Barcelona.
Another drastic measure would eliminate all Airbnb apartments in the city by 2028 and return 10,000 homes to residential use.
“And in Catalonia, short-term rentals are subject to the same price cap,” the mayor adds. “This means that the profitability of the investment fund will be significantly reduced. It’s a deterrent.”
Jaume Collboni leads the Mayor of the Housing Alliance initiative, including 15 major European cities. They presented the European Housing Action Plan to the EU, urging them to invest in affordable housing in Brussels and exempt such spending from restrictions on state aid regulations.
“The European Commission must act,” Kolboni argues. “If citizens see that European institutions are not addressing such a magnitude issues, that can create a crisis of legitimacy,” he says.