The issue of housing affordability in Europe has returned to the spotlight following a high-profile statement by Spain’s Prime Minister Pedro Sánchez. He is calling for immediate, concrete action to halt the rapid deterioration of the real estate market. According to him, the current crisis is already undermining the way of life for millions of Europeans, and without decisive measures, the consequences could become irreversible.
Sánchez points out that over the past 15 years, housing prices in EU countries have risen by 60%, while rental rates have increased by almost a third. As a result, one in five Europeans is now on the brink of poverty or social exclusion. According to the Spanish Prime Minister, housing—which should be a fundamental right—has become a trap, limiting people’s opportunities and threatening the economic stability of the entire region.
Rising Prices and Social Risks
Experts note that a shortage of new construction has become a chronic problem for European cities. For nearly two decades, the pace of new housing supply has not kept up with growing demand. As Sánchez emphasizes, many major cities, including Madrid and Valencia, are experiencing the displacement of local residents from historic centers. These areas are increasingly turning into tourist hubs, making permanent housing inaccessible for ordinary citizens.
The situation is worsening due to rampant speculation in the real estate market and the growth of short-term rentals targeting tourists. Sánchez emphasizes that these trends not only deprive people of the opportunity to buy or rent housing at reasonable prices but also erode the social fabric of cities, undermining their economic and cultural resilience.
The need for new approaches
The Prime Minister of Spain is convinced that overcoming the crisis requires not only Europe-wide solutions but also local measures that account for the specific characteristics of each region. He welcomes the European Commission’s initiative to launch the Affordable Housing Plan, which provides for flexible funding and support for national programs. However, Sánchez insists that this is not enough without strict regulatory measures to limit short-term rentals and curb speculative transactions.
Among the top priorities, he names increasing construction volume, protecting tenants’ rights, and creating mechanisms to prevent housing from being turned into an investment tool for non-residents. According to Sánchez, only a comprehensive approach will restore housing to its original purpose—being accessible and decent for everyone.
Political consequences
Sánchez warns that unless European authorities show resolve, the housing crisis could fuel the growth of Euroscepticism and undermine trust in EU institutions. He stresses that citizens expect not promises but concrete actions capable of changing the situation in the shortest possible time. Otherwise, he says, Europe risks losing not only economic stability but also the trust of its people.
As possible measures, Sánchez proposes expanding market regulation tools, introducing restrictions on property purchases by foreigners, and ensuring that local residents have priority access to housing. He also calls for increased investment in social housing construction and the creation of incentives for long-term rentals.
Looking to the Future
The issue of housing affordability has already gone beyond individual countries and become a pan-European challenge. Sánchez is convinced that only coordinated efforts at all levels of government can reverse the negative trends. He calls for the development of a unified policy that will take into account the interests of both national governments and local communities.
In conclusion, the prime minister emphasizes that the true strength of European unity is revealed not in declarations, but in the ability to provide every citizen with decent living conditions. In his view, the time has come for bold and decisive action that will define the future of an entire generation.
Notably, Pedro Sánchez has served as Spain’s prime minister since 2018 and is known for his strong stance on social policy and civil rights. Under his leadership, sweeping reforms have been implemented in healthcare, education, and the labor market. Sánchez has repeatedly initiated Europe-wide discussions on major social issues, including housing affordability and tackling inequality.
