The housing situation in the Spanish capital region is becoming increasingly strained. Over the past six years, the price per square meter in Madrid has risen by nearly two-thirds, while rental costs have increased by almost half. The regional authorities, headed by Ayuso, have decided to expand the ‘Mi primera vivienda’ program to include those already over 50. Previously, only citizens under 40 were eligible for this support.
This move effectively acknowledges that even people with substantial work experience and stable incomes are finding it impossible to obtain a mortgage for their first home. For many families, searching for their own housing has become a prolonged and stressful ordeal. While renting has long been a challenge, buying property now seems like an unattainable goal for most residents of the region.
The regional government’s plans include not only expanding the age eligibility for support, but also launching new construction projects. Authorities intend to speed up paperwork and increase the number of plots available for development to prevent a land shortage over the next decade. Around 30,000 new households are formed in the region each year, and without action, available plots could run out.
At the same time, the Madrid government refused to apply the national law that would have made it possible to limit rent increases in dozens of cities across the region. This decision sparked a wave of criticism, as secondary housing prices in Spain have already exceeded the records set during the real estate bubble. Over the past year, new apartments in Madrid have risen in price by more than 13 percent, while secondary housing has increased by almost as much.
In the coming days, Ayuso will present a series of new initiatives. These include another land law reform, increasing the size and density of buildings for social housing, and the option to use plots for housing that were previously designated for other purposes. In Leganés, a consortium is planned to be created to build more than four thousand apartments, and the ‘Vive Solución Joven’ program for young people under 35 will be expanded with another thousand housing units.
However, despite bold statements, many residents of the region remain skeptical about tangible results. In the six years since the first promises to build 25,000 apartments for young people and families, the authorities have managed to deliver fewer than five thousand units. The opposition accuses the regional leadership of announcing far more projects than are actually built. In addition, there are calls to apply the national law to lower rental rates and to allocate the saved funds to the development of new support programs.
The issue of housing affordability in Madrid remains one of the most pressing. Authorities are promising new measures, but residents are expecting not just words, but real changes in the property market.
