Spain's housing crisis escalates after parliament rejects emergency tenant protections

Key points

• Parliament rejected two housing decrees on Friday: the first by 178 votes to 172, and the second by 184 to 166. The measures included a suspension of evictions for vulnerable tenants until 2030, a ban on investment funds buying residential property, and automatic renewal of rental contracts.
• Tens of thousands of people marched in cities including Madrid, Valencia, and Barcelona. In Valencia, clashes between protesters and police near a real estate summit resulted in nine police injuries and five arrests, with police using rubber bullets.
• The eviction of 87-year-old Maricarmen Abascal in September sparked the crisis. Her landlord, Urbagestión, has agreed to let her return to her home, paying 30% of her pension (around €500/month) over eight years, but this has not ended the protests.
• House prices in Spain rose by 12.2% in the past year, and rents increased by 8.5% in 2025. The Bank of Spain estimates the country is short of 700,000 homes. Madrid and Barcelona are the most expensive cities for rent, at €22.70 and €23.80 per square metre respectively.
• The defeat of the housing bill has heightened speculation that Prime Minister Pedro Sánchez may call an early general election, as his coalition lacks a majority in parliament and relies on smaller parties, including Together for Catalonia, which opposed the legislation.

Background

The housing crisis in Spain has been building for years, with a severe shortage of homes and rising costs. The eviction of Maricarmen Abascal in September 2026 became a flashpoint, leading to nationwide protests and a political crisis. The government's attempt to pass emergency legislation was seen as a response to public outrage, but the failure to pass the measures has deepened the crisis.

How outlets are covering it

BBC and AP News focus on the scale of the protests and the political fallout from the failed legislation, including the possibility of an early election. NBC News highlights the government's attempt to broaden the definition of 'vulture funds' and the agreement with Abascal's landlord. The Financial Times argues that the crisis is a symptom of a deeper housing shortage, not just the actions of investment funds, and criticizes the government's measures as 'sticking plasters' that do not address the underlying supply issue.

Why it matters

The failure to pass housing legislation in Spain has deepened a national crisis, with tens of thousands of people protesting and the government facing a potential early election. The crisis highlights the severe shortage of homes and rising costs in Spain, which could have broader implications for the country's economy and social stability.

What to watch

The government may call an early general election, and protests are expected to continue. The Tenants' Union is calling for a general strike over the housing crisis. The government may also attempt to pass new legislation or negotiate with smaller parties to secure support for the measures.