Hundreds of Spaniards have set up tents in Madrid’s iconic Puerta del Sol square, demanding action on a housing market they say has been hijacked by profit‑driven investors. Young demonstrators such as 21‑year‑old university graduate Pierina Nicuray and 19‑year‑old film‑dubbing student Jorge Moreno argue that “vulture funds” and other investment vehicles are buying up empty homes, inflating rents, and leaving ordinary citizens without affordable options.

What the protesters say

According to the demonstrators, landlords exploiting the market and platforms like Airbnb are compounding the crisis. Moreno claims that many properties sit empty because they belong to “vulture funds and investment funds which hike up the rent … until they get rid of them.” The movement’s narrative was sharpened by the tragic case of 87‑year‑old Maricarmen Abascal, who was evicted after her property was bought by an investment firm that raised her rent beyond what she could afford. Although the firm later invited her back, she never returned and died in hospital.

Government response

Prime Minister Pedro Sánchez has framed the issue as one of speculative abuse, promising legislation “against those who consider housing just another object on the market with which to speculate.” His emergency measures were rejected by Congress, prompting a snap election scheduled for next month. The government’s stance aligns with public sentiment: a recent Centre for Sociological Research (CIS) poll found that 72 % of Spaniards want higher taxes on owners of ten or more properties, 76 % support limits on short‑term tourist rentals, and 40 % favour expropriation of empty homes.

Economic data and expert views

Economist Jorge Galindo of the Esade Centre for Economic Policy cautions that the evidence linking “vulture funds” to the rent surge is thin. Bank of Spain figures from 2024 show that only 8 % of rental properties are owned by companies, suggesting that corporate ownership is not the dominant factor. Galindo argues that the primary driver is a supply‑demand imbalance: Spain faces a shortfall of roughly 750,000 homes, a figure that could swell to one million by 2028, according to the Bank’s deputy governor Soledad Núñez.

The National Statistics Institute (INE) reports 3.8 million empty properties, but many lie in depopulated rural areas or are tied up in legal disputes, limiting their relevance to the urban crisis. Demographic trends have intensified pressure on the market: between 2021 and 2025, about 1.2 million new households formed, largely due to migration, while fewer than 500,000 new homes were built. The construction sector’s contraction after the Eurozone crisis, rising material costs post‑COVID, and political gridlock have all hampered supply.

Impact on households

Rental prices have surged dramatically. Idealista data show an average rent increase of 84 % over the past decade nationwide, with spikes of 113 % in Málaga and nearly 150 % in Marbella. A study by El País indicates that Spaniards now have 5 % less real spending power than ten years ago, with the average monthly salary in the Madrid region at €1,550. Retired taxi driver Francisco Pardo, 81, summed up the hardship: “No worker should have to spend 75 % or 80 % of their salary on rent, because what are they supposed to eat?”

Uncertainty

While protester testimonies and public opinion point to speculative investors as a key culprit, the limited data on corporate ownership of rental units leaves room for debate. The Bank of Spain’s 8 % figure may under‑represent indirect holdings or foreign entities operating through local subsidiaries. Moreover, the role of short‑term tourist rentals, such as Airbnb, appears to be highly localized, affecting hot‑spot neighborhoods more than the national market. These nuances mean that any policy response must balance curbing speculative practices with addressing the fundamental shortage of housing.

Looking ahead

The upcoming snap election will test whether Sánchez’s housing agenda can secure parliamentary backing. Regardless of the political outcome, the convergence of protester narratives, statistical evidence of a severe supply deficit, and broad public demand for reform underscores the urgency of a comprehensive solution. Tackling the crisis will likely require a mix of measures: stricter regulation of short‑term rentals, incentives for new construction, targeted taxation of large property owners, and perhaps mechanisms to bring vacant rural homes into the urban rental pool. Only a coordinated approach can bridge the gap between demand and supply and restore housing to a basic right rather than a speculative commodity.