Catalonia has taken a bold step by being the only Spanish community to request the implementation of rent price regulations as outlined in the Housing Law approved a year ago. In designated high-demand areas, rents must be frozen or adjusted according to the official index, potentially leading to a decrease in rent prices. The community had previously frozen or lowered prices in the 61 most populated municipalities, a decision that was later overturned by the Constitutional Court in response to challenges from the central government and the PP party. With housing costs rising by an average of 65% in the last decade and housing being the main expense for families, a survey conducted by the Center for Opinion Studies (the Catalan CIS) revealed that 81% of Catalans support the idea of regulating rental prices.
In a pioneering move, the Catalan government recently approved a decree aimed at limiting short-term vacation rentals, which landlords often turn to in order to circumvent price controls. Following the implementation of this regulation, it was found that 90% of new listings on real estate portals were for seasonal rentals. While the national government has set up a working group to study how to regulate this type of leasing, Catalonia has once again taken the lead. However, in order for the decree to be validated, President Pere Aragonès will need a majority that he currently does not have.
The left-wing tripartite government (PSC, ERC, and ICV) in Catalonia had previously attempted to introduce similar regulations back in 2007 with the approval of the Right to Housing Law. This law was based on the “social function” of housing and included provisions such as requiring developers to allocate a percentage of their construction to affordable housing or the expropriation of empty properties for rental purposes. These initiatives have sparked polarized reactions from stakeholders in the real estate sector and conservative parties.
Barcelona, like many global cities, has seen a surge in rental prices making it increasingly difficult for residents to find affordable housing. With rental rates surpassing the minimum wage, living in the city has become a challenge. The struggle affects a significant portion of the population, with a high percentage living in rented accommodations. The rising cost of living, coupled with stagnant wages, has amplified the housing crisis particularly for vulnerable groups, such as young people and migrants.
The impact of the current rental regulations in Catalonia remains to be seen. Some landlords are opting to extend existing contracts in order to avoid reducing prices, particularly large property owners who can maintain their rates without adjustments. However, critics argue that these maneuvers enable landlords to capitalize on the situation while tenants continue to face high rental costs. Despite the challenges, grassroots movements like the Tenants Union have played a crucial role in advocating for regulatory measures to protect renters’ rights and increase access to affordable housing.
Various political parties in Catalonia have outlined their promises and proposals on housing policies ahead of the upcoming elections. These include pledges to increase access to affordable housing, implement rent control measures, and invest in social housing projects. The different approaches and priorities reflect the complexity of the housing crisis in Catalonia and the diverse needs of its population. As the debate continues, the government must navigate these challenges to ensure that housing remains a fundamental right for all citizens.
