SPAIN has been warned it is hurtling towards a crippling housing shortage of more than one million homes by 2028 as the property crisis worsens.
Bank of Spain Deputy Governor Soledad Nuñez delivered the stark forecast during the Forbes Economic Summit in Madrid on Wednesday.
She revealed the country has already accumulated a shortfall of 755,000 homes since 2021.
READ MORE: Spain’s housing shortage its 750,000 homes as policies fail to boost supply
A further 300,000 properties will be required between 2026 and 2028 just to keep pace with soaring demand from new households and migration.
The severe shortage is driving real property prices back to levels last seen in 2005, shortly before the catastrophic bursting of the real estate bubble.
Nuñez warned the financial effort required to buy a home is now growing significantly faster than household incomes.
Since 1980, the real disposable income of Spanish families has multiplied by 1.8, slightly above the Eurozone average of 1.6.
READ MORE: Spain faces historic housing shortage as plummeting stock drives ‘massive price increases’
But real housing prices in Spain have skyrocketed, multiplying by 3.5 over the same period compared to just 1.8 across the rest of the currency bloc.
This massive divergence has created a severe barrier to entry for young buyers and new foreign residents trying to access the market.
Nuñez also called on banks to ensure they are channelling savings into productive investments that finance the real economy.
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