Brussels tells Spain to build more social housing as EU makes Spanish housing crisis ‘a priority’

BRUSSELS is calling on Spain to address its housing crisis through taking actions to strengthen its supply of social and affordable homes.

The European Commission has identified Spain’s housing crisis, and specifically its impact on young people as a top priority for the country to address.

According to the Bank of Spain, 40% of Spanish tenants are spending 40% of their income on rent. In comparison, the EU average is 27%.

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It noted the massive growth in tourism in the country and demand for temporary accommodation had reduced the availability of homes for locals. However, it also called out Spain’s social housing shortage and slow construction as another reason for the crisis.

“Selective increases in housing development volumes could have fundamental benefits in Spain, as they would improve the absorption capacity of labor supply in metropolitan areas while boosting domestic supply,” the Commission document released on Wednesday said. 

It recommended Spain: increase the housing supply by completing the reform of land law, reduce permit processing times for new builds, eliminate administrative bottlenecks, and address labor shortages in the construction sector.

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