The supply of homes for long-term rent in Spain has fallen by around 20 per cent in the three years since 2023, according to Idealista At the same time, rents have continued to rise: they increased by 5.8 per cent year on year, and an 80-square-metre flat now costs an average of more than €1,200 a month. In parallel, the number of seasonal rentals has roughly doubled since 2023, according to Idealista, further reducing the supply of homes for permanent residence.
The turning point is considered to be the entry into force of the Ley de Vivienda, which was passed in the Congress at the end of May 2023. The law allows regions to designate areas as zonas tensionadas and link rents in new contracts there to indices. According to official government figures, there are currently 317 municipalities in five Autonomous Communities designated as zonas tensionadas; rent caps for new lettings apply there.
Idealista quantifies the trend over time as follows: between the first quarter of 2023 and the first quarter of 2024, the number of homes listed for long-term rent fell by around 15 per cent. Smaller declines continued in the following years. In early 2025, the supply was about three per cent lower year on year; a similar decline was reported at the start of 2026. Idealista bases its figures on listings and price data from its portal across Spain.
The causes remain disputed. Government representatives see the Ley de Vivienda measures as helping to ease pressure in particularly strained markets and point to some places where initial rents on new contracts have been moderated. Parts of the housing industry and landlord associations, however, warn that regulation undermines planning certainty and shifts homes into other segments, such as seasonal rentals. The available market data do not conclusively establish a causal link between the law and the decline in supply, and sources interpret the relationship differently.
For low- and middle-income households, the combination of falling supply and rising prices makes finding a home more difficult. How the situation develops will depend on local authority decisions about zonas tensionadas, market responses and possible additions to national housing policy.
Editor: Mira Cadena (Article created with AI assistance).