Rental Housing Suffers as Demand Swells Amidst Falling Supply

16 September 2019 – The supply of homes for rent has fallen over the last year, even as demand is increasing, placing upward pressure on prices and sparking furious debate within Spain. Arguments are raging in the media and political circles, with a rising number of people criticising socimis, investment funds and short-term rental operators like Airbnb.

According to a study by the real estate website Fotocasa, the supply of homes for rent on the market fell by 27% in the last year.  At the same time, there was a 56% increase in demand, leading to a search for the basis of the market changes.

However, the criticism leveled at investment funds and Airbnb seem to be unfounded. According to the Ministry of Development, the total stock of rental housing exceeds 2.3 million residences. The market share in the hands of large investors, however, is  just under 3% of the market, or about 115,000 homes.

Short-term real estate operators like Airbnb and its ilk also seem to be taking an unfair amount of blame.  Unlike in neighbouring Lisbon, Portugal, these operators only control about 4% of the total stock of such real estate in Barcelona, 0.8% in Madrid and 1.2% in Palma de Mallorca.

Original Story: Libre Mercado – Diego Sánchez de la Cruz

Photo: Europa Press

Adaptation/Translation: Richard D. K. Turner