Across Spain, streets have filled with citizens demanding urgent action on a housing crisis that has left millions struggling to find affordable homes. The wave of demonstrations follows the parliamentary defeat of two emergency decrees aimed at curbing evictions, extending leases and restricting the purchase of residential property by so‑called “vulture funds.”
Background
Public anger surged after an 87‑year‑old woman was evicted following a sharp rent increase, an incident that sparked nationwide protests. The Bank of Spain estimates a shortfall of about 700,000 homes, while house prices have risen 12.2 % in the past year, according to the national statistics institute INE. Rental costs have also climbed, with an 8.5 % increase in 2025 and a 9.7 % rise in Madrid alone.
What the Government Proposed
Prime Minister Pedro Sánchez’s left‑leaning coalition introduced two decrees:
- First decree: suspension of evictions for vulnerable tenants until 2030, a two‑year extension for leases expiring before 2028, higher taxes on tourist apartments, and a ban on “vulture funds” buying residential property.
- Second decree: automatic renewal of rental contracts, a core demand of tenant groups.
Parliamentary Rejection
Both measures were turned down in the lower house. The first decree lost by 178 votes to 172, while the second fell 184 to 166. The opposition came from the conservative People’s Party (PP), far‑right Vox, and the pro‑independence Together for Catalonia (JxCat), which signalled its opposition on the eve of the vote.
Impact on Tenants
Tenant organisations argue that the defeat “exacerbates the housing crisis which is costing the working class their lives,” as quoted by Madrid’s Tenants’ Union. Demonstrators have set up encampments, notably in Puerta del Sol, where they have been camping for days. A spokesperson for the Valencia Tenants’ Union said, “There is a lot of anger in the streets.” One protester, David, told RTVE, “We’re not here for pleasure or comfort. We’re here out of conviction.”
Political Implications
The parliamentary loss deepens speculation that Sánchez may call an early general election, despite the next scheduled vote not being due until next summer. His coalition, lacking a parliamentary majority, relies on smaller nationalist parties from Catalonia and the Basque Country, making the housing agenda a potential flashpoint in upcoming political negotiations.
Uncertainties
Future legislative prospects: With the current proposals rejected, it remains unclear whether a revised package will gain enough cross‑party support to pass. Economic fallout: Continued rent hikes could further strain low‑income households, potentially prompting more widespread unrest. Political stability: An early election could reshape the balance of power, influencing not only housing policy but also Spain’s broader reform agenda.
As Spain grapples with a severe shortage of homes and rising costs, the protests underscore a growing demand for decisive, equitable solutions. Whether the government can forge a compromise that satisfies both tenants and parliamentary opponents will shape the nation’s housing landscape for years to come.