Two points: there are a lot of people searching for a home – either to rent or to buy. Also, despite the apparent lack of available properties, Spain has more than 3.5 million vacant homes, representing some 14% of the total housing stock. Around half of these homes are in those smaller municipalities with fewer than 50,000 inhabitants.
I once shared an apartment in Seville with four other students, me and a British school-friend in bunks in what must have been a converted bathroom, with white tiles on the wall. The other three were studying at the university and came from Montefrío in Granada. The next term, I shared a three-bedroom 8,000 peseta apartment with two students.
It’s fine when you are young and running around the city all night - but not when that single room (share the kitchen and bathroom) costs 1,000€ a month.
We look at the problems of the renters and the buyers – but part of the whole must be the sellers, the landlords and the owners: having a property portfolio is good business.
This is partly why, following the covid when we all worked from home (often in a charming village two hours away from the city), they wanted us to return to the office: taxes, office blocks and city politics. My old mate Cheap Pete once told me (with his New Jersey accent) – for a million dollars you can buy a giant property in North Dacota or a parking lot in Washington DC. But you might wait a whole year to sell that beautiful mountain, or less than a day to sell the city plot.
Which one was the better investment? The second choice, but only if there’s a demand.
No wonder the property barons want to see a certain scarcity – prices (and profits) must go up. In Madrid, some old factories and warehouses, shops and abandoned outlets are now being switched to residential homes, or maybe into 1,000€ a bed-chamber with ‘coliving’ . There’s the advantage of city life, interesting flatmates and maybe a downstairs eatery, if your wallet can still manage the menu del día.
I live in a village on the coast. There’s a giant abandoned hotel taking up a chunk of the infrastructure. It was closed in 2008 and now belongs, for some reason, to the Madrid regional government. It could become fifty apartments. In the back of the next-door port of Garrucha, there’s a large unfinished block of flats, rotting in the sun and covered in graffiti. That’s another fifty potential homes. The scarcity then, is in the city – although there are still a fair number of empty residences even close to the Puerta del Sol.
Many of those who live in the city came from elsewhere, and they may still own a place in the country, a casa del pueblo they’ll visit during the summer or the local fiesta – maybe to show off their success, or perhaps just to take it easy for a while and share a noisy lunch with the cousin who stayed behind. Other people who own a couple of houses might leave one empty. One day the children will live there. Others still will rent, or sell, or turn it into an Airbnb, replace the sheets and towels, and create a cleaning job for Encarnación.
Digital nomads (doesn’t that sound fun?) will rent for a while, working from their laptop, while idly planning their next move to Khartoum or Bucharest. Foreigners will buy the house, and maybe the one next door, and try and put in a swimming pool. Others still will take the week-end option and then leave a cigarette burn in the mattress.
Maybe put in a security system (like it says on the telly) to defy the okupas.
Then there are the millions – apparently – of people who want to rent somewhere half decent for a little bit less than their entire salary, eating rusks and asking their parents for a few extra euros (until either the wage or the rent, whichever one comes first, is raised by a fraction). The Government talks of making (or building) more cheap homes or closing down illegal rentals, or helping the under-thirties buy a house in the smaller towns. Some local governments are considering forcing the sale of empty homes.
The Spanish Constitution Article 47 gives us all the right to una vivienda decente.
The influencers in their YouTube videos meanwhile are talking about investing in their wares (from their bases in low-tax Andorra), and one day soon, you too will be able to afford to buy and rent out houses out like the best robber landlords.
Gloomily, we read: Spain’s record housing market is far from peaking – ‘prices will reach unprecedented levels’. Hey, the higher the price, the happier the owner.
Maybe the foreign Vulture Funds will come and pick up another entire city block: they are here for the opportunities.
A left-wing politician sums up the problem: “People with money in this country invest in gold, the stock market, and real estate”. They buy in the city (Cheap Pete’s parking lot) or on the coast, leaving many thousands of Spanish municipalities by the wayside.
El País has a story about a thirty-year-old who has finally given up on Madrid and moved to the town of Ponferrada – in search of a quieter life, escaping job insecurity and housing prices. “Life moves on and priorities change,” he says blithely.
Then there any many people living in extreme poverty, or in shacks or under bridges. Local guiri Richard Gere may have the answer – he says in a TV interview that "My wife and I have set a goal to end homelessness in Spain within six years". I think that this may prove to be a larger challenge than he imagines. Caritas puts the number of the dispossessed at 37,000.
In all, there are 48 million people living in Spain and 27 million homes – which works out at a house for every 1.8 persons. That’s not so bad…