“Oh, I love Barcelona.” That’s the comment I get every time I am abroad and say that I am from Barcelona. Everybody loves it. And I can get it: its architecture, its vibrant art and culture scene, its Mediterranean lifestyle. But all that glitters is not gold. Most people would love to live in Barcelona, but only a few can afford it, as a huge housing crisis is striking the city. And locals are fleeing away in front of the arduous situation of finding a rental price that would not be above their monthly wage.

According to the Bank of Spain in its 2024 report, Barcelona rents have spiked 33% in just eight years, pushing average monthly rents to €1,200 in a country where the minimum salary is €1,134 gross and the average one is right above €1,800 gross. Seeing the numbers, the question is obvious: how can one actually live there? It is not a surprise then that, according to the last local barometer published by Barcelona Municipality, housing is the second biggest worry for the residents of Barcelona.

Housing is a structural problem in Spain, the European country with the highest percentage of people living in rental housing at risk of poverty and social exclusion: 45%. According to the OCDE, over one-fourth of Spanish families use over 40% of their net income to pay the rent, in contrast to the numbers in Germany (5%), France (9%), or Italy (12%). This has an even more severe impact on young adults, who find it very difficult to become independent of their parents' home. They find it very difficult to afford an apartment—or even a room—to rent. And not to talk about buying a place. According to the Spanish Youth Council, just to pay the base payment for a mortgage, young Spaniards should invest the equivalent of 4.4 times their yearly net income. For many under-30s, financial independence and moving out are simply unattainable, with seven out of ten still living with their parents.

Barcelona is becoming unlivable for residents

In Barcelona, as I was stating at the beginning of the article, the situation is even worse, making the city unlivable for residents. But what are its causes?

An economist would suggest an easy explanation: the demand for housing is higher than its available offer, so the market adjusts. And overall, they would not be completely incorrect. But we should analyze it deeper. There is a clear shortage of housing, partially driven by the population increase and the decrease in the number of people living in one house. But tourism also has a lot to do with it. Barcelona is the most visited city by foreign tourists—over 9 million in 2023—and the number of houses destined for tourist and seasonal rental has dramatically increased, being at the moment 40% of the total available homes in the city, according to the Bank of Spain in its 2024 report. Tourists seek central neighborhoods, driving up rents in traditionally residential areas.

Speculation also has a lot to do with it. With Barcelona becoming more attractive to foreign investment, the Barcelona Metropolitan Housing Observatory reports that 40% of its housing is in the hands of big landowners. And they basically prioritize profit over guaranteeing a basic right such as housing. In this profit maximization mindset, these last years there has been a boom in renting rooms instead of apartments. Since 2015, the price of renting a room has doubled until an average of €638/month in 2024.

Are institutions doing enough?

This issue is, of course, on all the policymakers' agendas, who are aware the situation might worsen even more within the last decade if the problem is not tackled. There have been several initiatives pointed in the right direction, but their effectiveness has not yet been proved.

Since early 2024, the Catalan Government has regulated the rents in several municipalities considered as “stressed housing areas,” including the city of Barcelona. This regulation sets a rental price cap for each square meter for new rental apartments and prevents those that have already been rented before from raising their price once the existing rental contract expires. Its effects are yet to be seen, but within the first few months, it just translated to a slight decrease in prices, almost unnoticeable. Administrations are also working on several directives to regulate short-term rentals and limit the housing devoted to tourist use. And even the Mayor of Barcelona announced he would ban apartment rentals to tourists by 2028. How he is going to do it remains unclear.

There is no magic solution to the housing problem, but most experts would agree that it is key to increase the public housing stock, especially the one dedicated to social rent. At the moment, there are only 11,500 homes in a city with a population of over 1.5 million people. Increasing it would take time and money. And the clock is ticking.

“Success” cases

The housing problem is affecting not only Barcelona but many other cities all over the world. And some of them have implemented different measures that have—more or less—had a positive impact, which Barcelona could mirror.

In cities such as Berlin (Germany), San Francisco (United States), or Amsterdam (the Netherlands), rents are either capped or frozen, and there is strong tenant protection that provides rights for long-term renters. Moreover, in Amsterdam, a significant portion of housing is designated as subsidized social housing. Or in Vancouver (Canada), a tax on vacant homes has been implemented in order to mobilize these properties that are not being rented. While these solutions aren’t one-size-fits-all, they show how cities can take bold measures to protect residents. Policymakers should pay close attention to them and act soon, or Barcelona’s unique identity is at risk of being lost.