Bank of Spain Warns Housing Shortfall Could Reach One Million Homes
Spain: The Bank of Spain has warned that Spain’s housing deficit could exceed one million homes by 2028 if current supply and demand trends continue. Deputy Governor Soledad Núñez said the deficit could increase by around 300,000 homes between 2026 and 2028, on top of the approximately 750,000-home shortfall previously estimated by the institution. The shortage has been linked to continued household formation and migration, while housing supply has not increased sufficiently to meet demand. Núñez said the widening gap is making access to housing more difficult, particularly for young people and new residents.
The Bank of Spain also highlighted the growing difference between household incomes and housing prices. According to Núñez, real disposable income for Spanish households has increased 1.8 times since 1980, compared with 1.6 times in the European Monetary Union, while real housing prices in Spain have increased 3.5 times, compared with 1.8 times in the Eurozone. The deputy governor also discussed changes in financial intermediation, including the growing role of neobanks and private credit. She called for greater understanding and transparency around these financing channels and said financial institutions would have an important role in financing technological transformation and productive investment.
Source: EL PAIS
