Since 2010, the housing crisis in the European Union has escalated dramatically, with average housing prices soaring by over 50% and rents climbing by 26%. Among the hardest-hit countries, Spain struggles significantly, reporting rent hikes of up to 80% in the past decade. This crisis is the result of a combination of restricted housing supply, inflated construction costs, a rise in short-term rental markets, and rampant speculation by foreign investors. The situation has placed immense financial strain on long-term residents, pushing many to the brink of eviction and displacement.
An emblematic case is that of Rosario Castelló, a longstanding resident of Barcelona who faces eviction after her apartment building was acquired by the Vandor Group, a subsidiary of a British investment fund. Having lived in her flat for 26 years, Rosario has built her life there, raising her children and establishing her clothing brand, Pinku No Kuma. However, the new owners are converting residential units into co-living spaces primarily for short-term rental to tourists, thereby displacing her and other long-term residents.
Rosario’s situation reflects a broader trend, as investment firms known as “vulture funds” are aggressively purchasing entire buildings for speculative purposes, exacerbating the housing crisis for long-time tenants. Despite her expired lease, Rosario remains determined to fight against her eviction through legal proceedings, as she struggles to find affordable alternatives in a market characterized by skyrocketing rental prices. Her story illustrates the desperation many residents feel and the growing resistance against these real estate practices.
The tenants’ union, Sindicat de Llogateres, rallies support for those like Rosario fighting against evictions. Members emphasize the urgent need for protective policies regarding housing rights. Martina Ges Torra, another member of the union, articulates a collective commitment to defend the right to housing amidst what she describes as a critical lack of protections for residents facing displacement. Their activism reflects a broader community effort to combat the crisis, leveraging collective action to pressure local authorities for intervention.
Responses from the Spanish government aim to remedy the unfolding crisis by proposing various measures, such as removing 65,000 listings from platforms like Airbnb, raising taxes on property purchases by non-EU nationals, and imposing rental caps. Barcelona’s Mayor, Jaume Collboni, notes that these efforts have already led to an 8% decrease in rental prices in the city. Additional plans to eliminate all Airbnb apartments by 2028 could return 10,000 homes to the local residential market, intending to mitigate the pressure on housing availability for residents.
Moreover, Mayor Collboni spearheads the ‘Mayors for Housing Alliance’ which includes 15 major European cities advocating for a European Housing Action Plan. This initiative calls on the EU to invest in affordable housing and to exempt such investments from restrictive state aid regulations. Emphasizing the critical need for action, Collboni warns that neglecting the housing crisis could lead to a legitimacy crisis for European institutions, urging that addressing these social challenges is integral to sustaining the democratic structures of the European project.
