Housing Market Crash & Evictions: Ombudsman Warning

by Archynetys World Desk

The Ombudsman, Ángel Gabilondo, has warned in his 2025 Annual Report about the worrying increase in complaints from vulnerable families, many with dependent minors, affected by judicial evictions from their habitual residence. This housing emergency situation occurs in an extremely tense market context. According to a study by Idealista also published this Tuesday, the supply of rental homes in Spain has plummeted by 61% since 2020, while prices have risen by 40% in the same period, making access to a decent roof even more difficult.

Gabilondo has stressed that the actions carried out by his institution in relation to these launches reflect the severity of the crisis, going from 60 interventions in 2023 to 142 registered in 2025. The Ombudsman has assured that one of the main complaints reported by citizens affected by an eviction is the silence on the part of the Administration and lack of knowledge about what would happen after the launch of their home, which generates insecurity and uncertainty in those affected. Often, those affected report what they perceive as the passivity of social services and that they acted by improvising plans once the residential problem arose.

For this reason, Gabilondo has asked local administrations to have temporary accommodation devices planned, intended to resolve emergencies on the date on which it is certain that the eviction will be carried out. In addition, it has indicated that this information must be conveyed to the affected people so that they know that there are planned housing alternatives and to avoid uncertainty and anxiety as much as possible.

Rental offer plummeted

In his report, the Ombudsman has once again highlighted the enormous difficulties faced in the exercise of the right to housing and his concern that the problem has intensified, as a result of the increase in purchase and rental prices in the last decade, which has been greater than the increase in salaries and the purchasing power of citizens.

Given the high prices of housing and the solvency requirements necessary to obtain mortgage financing for its purchase, the tension has shifted towards the demand for rentals, whose prices have been increasing at very high percentages for several years, in a context of significant population growth and insufficient housing construction.

The statistical reality of the market supports this social concern. Cities like Barcelona lead the drop in rental supply with a decrease of 90% compared to 2020, followed by Granada, Palma and Madrid, where the reduction exceeds 73%, according to the aforementioned Idealista report.

The study analyzes the evolution of the rental market in the last five years, since the beginning of the pandemic, when the state of alarm caused a significant increase in the available ‘stock’ due to the stoppage of activity and the few signing of contracts for several months. This increase in supply, especially notable in the most dynamic markets, was accompanied by a drop in prices that encouraged many families to change homes or rent. However, five years later, the scenario has changed significantly. Thus, many of the homes that went on the market in 2020 are now returning with prices 40% higher, but in a context of lower availability and greater demand.

This shortage has caused competition for each available home to skyrocket in all Spanish capitals, intensifying especially in Lleida, Palma, Burgos and Barcelona. In parallel, the increase in rent prices has been widespread and persistent, with Valencia leading the way after registering an increase of 82% in five years, followed by Alicante, Segovia, Barcelona and Palma.

Competition is skyrocketing in all capitals. The low supply of available apartments has intensified competition for each home. Lleida and Palma lead this increase, followed by Burgos, Barcelona and Granada. No capital has registered decreases in this indicator, although the most moderate increases have occurred in Ceuta, Cuenca, Pontevedra, Lugo and Badajoz.

Price growth well above wages

The Ombudsman has also highlighted that the increase in purchase and rental prices in the last decade has been much higher than the increase in salaries and the purchasing power of citizens. Gabilondo has pointed out that the accelerated growth of housing for tourist use has reduced and made the permanent rental market more expensive, unbalancing the social and economic fabric of the municipalities. In addition, the institution collects complaints from owners about the delay in receiving the compensation provided for by the anti-eviction moratorium, which in some cases lasts more than a year despite having a resolution period of three months.

Given this scenario, Gabilondo advocates effectively applying the Right to Housing Law to limit prices and stop the expansion of tourist rentals in the affected municipalities. The institution urges public authorities to significantly increase the stock of public and protected housing intended for rental until it reaches the European average. Likewise, it demands greater agility in the management of aid, denouncing that the funds intended to cover rent often arrive months late and do not cover all requests.

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