Background
The housing crisis in Spain and in particular the image of Maricarmen Abascal, an 87 year old woman, being evicted from her flat on a stretcher following a 400% increase in her rent has lead to an irruption of anger causing hundreds of thousands to take to the streets demanding an end to a system that condemns millions to live in cramped, often poor quality, unaffordable housing conditions. Maricarmen ultimately won her battle, and her corporate landlord was forced to reduce her rent to virtually the same level as it was prior to the attempted increase. Tragically, Maricarmen did not survive her ordeal at the hands of these bloodsucking Landlords and died in hospital but her fighting example gave birth to a movement. Her funeral was not a solemn affair but a defiant march of 20,000 people determined to fight for justice and dignified affordable housing.
Spain’s housing crisis is not new, it is long term and deep seated. However the severity of the current crisis and the outrage expressed over the eviction of an 87 year old has given birth to a new movement which has many similarities with the 15-M revolt of 2011 which in turn was a response to the austerity imposed in the wake of the financial crisis of 2008. In that sense the current uprising is not only challenging the power of the speculators but the capitalist system itself.
Pablo Sanchez, Spain’s prime minister may opportunistically point the finger of blame at the socalled vulture funds for buying up cheap housing and then forcing up rents but the truth is that his PSOE government has done precious little to address the issue throughout its period in power. The unsustainable hike in rents as well as an unbearable cost of living crisis has happened under his watch. His decision to call a snap election is a cynical attempt to piggy back on the mass protests creating an opportunity for him to remain in power.
Housing Crisis
Spain’s housing problem didn’t arise in the aftermath of the 2008 financial crisis, when banks sharply restricted mortgage lending to ordinary families but the crash widened the crisis. Ordinary homeowners as well as renters saw costs rise sharply in response to the crisis. Successive governments not only failed to address the crisis they contributed to it by giving the green light to the speculators and turning a blind eye to the growing inequality in particular in the housing sector.
Javier Gil, a housing expert from the Spanish National Research Council commenting on the 2008 financial crisis on the Politico.eu website 5th October stated, “The cash didn’t disappear from the market, it just ended up in the hands of investors….What we see in Spain is a new cycle led by speculative, non-residential demand.”
That cycle resulted in a “tenant generation”, mainly young people, unable to access home ownership not simply because of a lack of housing but because high-income investors have bought homes as assets. That tenant generation also suffers from crushingly expensive rents imposed by the same speculators that hoovered up whole swathes of repossessed real estate in the aftermath of the financial crash. The same hated “vulture funds” that attempted to raise Maricarmen’s rent by 400%.
The scale of the crisis is stark. Figures from Spain’s National Institute for Statistics(INE) offers further evidence of the eyewatering increases in housing costs between 2015 and 2025 when average home prices in Spain rose by 80% and rents shot up by 87%, while average salaries increased by only 30% in the same period. The OECD paints a broader picture of the increasing inequality in Spain over a longer period of time showing that average salaries have only increased by 7.8% since 1995, an increase dramatically outpaced by the cost of housing.
For the youth the situation is worse still. The OECD also shows that for young workers(those aged under 35) their average salary has actually fallen in real terms by 16.8% since 2001. It is no surprise then that in a report released in May 2026, the Consejo de la Juventud(government funded organisation for youth) notes that the average cost of renting a home of their own would cost a young person 98.7% of their net salary! This explains why 69% of 18-34 year olds still live with their parents.
These alarming figures give some idea of the depth of the crisis, it also shows that there are no signs of the crisis going into reverse but in particular how it has hit young people most severely. No wonder tenants and workers are taking to the streets and no wonder those protestors are not only calling for measures to control rent control and lower rents but also for strike action to secure better wages. It is also no wonder that those protesting are overwhelmingly drawn from the ranks of the youth.
Government Response
Under pressure from the movement on the streets Spain’s PSOE government responded by presenting two decrees in parliament that would have offered some additional protection to tenants but they were voted down by the Right wing parties with support from a minority Catalan party Junts per Cataluna.
The touch paper was light for a further wave of protests and demonstrations. Protests were held, camps set up in various cities reminiscent of the 15-M movement in 2011 and further actions planned. The Sindicato de Inquilinos(tenants union) together with other social organisations, left groups and student organisations announced major demonstrations throughout the country demanding change.
On the 2nd October demonstrators poured into Madrid’s main square from different areas of the city, organisers claimed that 500,000 people joined the demo. Similar marches were held in 50 other Spanish cities with tens of thousands taking part. Demonstrators called for greater tenant’s rights, more affordable housing but importantly they turned not just to the tenants unions but also to the trade unions. Chants of “We need a General Strike now!” were heard loud and clear. It is also significant that these protests, called by the Tenants union, were supported by many trade unions themselves.
Protesters in Barcelona and other areas of Catalonia postponed their demonstration until the following Monday due to the bad weather. Here an estimated 120,000 flooded onto the streets also calling for rent control, rent freezes and a general strike for an increase in wages.
In the absence of any major party representing the interests of tenants and young people, they turned to the trade unions as a means of forcing the politicians to act. A general strike seemed the most attractive idea and the best way to fight for more secure housing rights as well as affordable rents. That is why the tenants unions have been some of the most enthusiastic supporters of widespread industrial action.
The PSOE government claim to have raised the minimum wage considerably in a pathetic attempt to stave off criticism but as the Madrid Tenant’s Union leader, Valeria Racu pointed out, “We cannot ignore the fact that housing is where most of our wages go. What is the point of raising the minimum wage if housing costs are rising three, four or five times faster?”
Election
It is a positive sign that tenants and housing activists view the trade union movement as a natural ally and a means of fighting back but the movement also needs a political arm, a party or a coalition of organisations capable of developing a political programme which not only identifies the problem but also one that offers a solution to the housing crisis as well as the general cost of living crisis. Valeria Racu said the Tenants’ Union wants politicians to commit to enacting indefinite rental contracts, legally mandated rent reductions, an end to evictions and speculative purchases, and a major expansion of public housing by reclaiming homes held by banks and investment funds. These are legitimate and necessary demands which would require a radical programme. Such a programme would require not only taking on the so-called vulture funds to exclude them from “investing” in housing, it would also mean nationalisation of the banks which would facilitate the use of these resources to plan and fund a mass building programme of genuinely affordable, well designed, well built, safe public housing. Neither PSOE, its left partner in government Sumar nor any of the other left organisations have outlined a programme that goes anywhere near to meeting these essential demands. The question is who will? What type of political force is necessary to bring change that ordinary working class people are crying out for on the question of cuts in the public sector, on the question of housing and on the issue of the cost of living crisis and how that can be built?
Spain’s prime minister, Pedro Sanchez, is presenting himself as the party that represents those fighting against the vulture funds. He claims to have transformed Spain in achieving “the best economic, social, and environmental results of any democratic government in our country’s history,” In some ways the figures have marked a change. Spain has seen its unemployment rate fall to 9.8% in the 2nd quarter of 2026, lower at any time since 2008 and down from a high of 27%. Employment is at a record high. According to the IMF, Spain was the world’s fastest growing large, advanced economy for the second year running in 2025. However the explosion of anger over the question of rents and lack of affordable housing shows the extent to which that growth has been uneven. It also shows that even during a relatively favourable juncture for the Spanish economy, capitalism in Spain is incapable of satisfying the basic requirements of life such as affordable housing. If there is widespread anger around the issue of housing during a period of relative boom imagine how that anger might be amplified in the event of a even a mild downturn.
Sanchez’s recent attempts to pass decrees in parliament to limit the power of the vulture funds in controlling and pushing up rentals and housing costs were brought in as an attempt to quell the mass movement against the speculators. However he has had 8 years to outline his plans to implement rent control, a moratorium on evictions and deliver automatic renewals of rental contracts. He has had 8 years to spell out plans that prevent speculators from hoovering up Spain’s housing stock but what has happened? In those 8 years the housing crisis has gone from bad to worse especially in the metropolitan areas. Madrid in particular has seen rents rise by over 61% in the last 5 years according to the property website Idealista. This explains why there has been such an explosion of anger coming from those impatient for change. It also explains why many of those protestors do not trust the PSOE government to implement genuine change and underlines the political vacuum which exists.
Young people, who have been at the forefront of the recent protests, continue to suffer low wages and experience the worst housing. Sanchez himself partially acknowledges this but his failure to overcome their legitimate concerns demonstrates how weak his programme is and why it is impossible for him to offer genuine hope of change without challenging the power of capital. As housing expert Javier Gil says, in Politico.eu “Sánchez’s Socialist Party has spent years claiming to want to tackle the housing market, but in practical terms it’s followed the same approach as right-wing parties,” “They’ve avoided questioning the status quo or proposing structural limits or transformations.”
The failure of successive governments in Spain to offer working class people decent affordable homes over a period of time is well documented and the record of the current PSOE government is no stranger to that failure. However it is also an example of how Sanchez may use this crisis to bolster his own standing despite previous failure. In 2023 he described the housing crisis as a “great constitutional challenge” and pledged to use “all state revenues” to address the problem. His pledge then was to provide 184,000 public and affordable homes. By August 2024 when the government last provided any detailed account only 14,000 homes had been, “made available to citizens”. The recent rollout of the government’s new housing portal, CASA47, was similarly underwhelming. It initially listed just 638 homes! None of which were in markets like Madrid or Barcelona, where the crisis is particularly acute. This provides further evidence, if any were required, of why neither the PSOE government nor the system that they preside over can be trusted to deliver on the housing question.
Nonetheless Sánchez has sought to seize this moment to seek re-election. He clearly feels that the anger around the issue of housing and the way in which the right voted down his very moderate housing decrees will work in his favour. It is likely that he will use this in an attempt to divert attention away from the issue of the migrant crisis and corruption that has dogged his administration: close political allies have been convicted and investigations into family members for corruption are ongoing.
However it will not be easy for him to steer the narrative away from immigration as the right wing and Vox in particular will seek to lay the blame for the housing crisis at the feet of the immigrants. Vox are an extreme right wing anti working class party who have no interest in solving the housing problem or relieving the concerns over the soaring cost of living crisis faced by many workers. Nonetheless they will happily exploit the very real concern which exists around the issue of housing to create division amongst the working class. This is why it is so important for the working class to build a political force capable of articulating a genuine socialist alternative, one which seeks to unite both migrant and non migrant workers in identifying the real cause of unaffordable housing, the speculators and big landlords who take advantage of scarcity to push up prices. According to a recent Bank of Spain report 750,000 more homes needed to be built from 2021-2025 to address the crisis. Whilst this indicates the scale of the problem, there is no guarantee that building that many extra homes would have significantly reduced costs if they had remained in private hands. The need for a bold socialist programme on the question of housing, the cost of living crisis and crisis in the public services has never been so acute. Only a socialist approach to these questions can unite the working class and expose the empty phrases of PSOE as well as provide a real alternative to the poisonous lies and division of the PP and the far right Vox.
Without a genuine socialist alternative Sanchez will no doubt pose this election as “People vs. the Speculators” and attempt to reinvent himself as a radical opponent of the worst excesses of capitalism. He has already boasted how proud he is of his government that “denounces genocidal figures while others remain silent and fights the tyrants, oligarchs, and speculators who seek to destroy our children’s future to line their own pockets.” In truth he is hiding behind a fake mask of radicalism, promoting himself as someone who stands up for the oppressed when in reality his government has pursued a continuation of capitalist policies practised by previous PP and PSOE governments.
However despite his programme and not because of it, Sanchez may be successfully re-elected given the wave of recent protests and the desperation of workers and housing activists. Recent polls indicate a growing support for PSOE and a significant drop off in support of the conservative PP, however the same poll shows a rise in support for Vox demonstrating a further polarisation. This is a turn around in events from a few weeks ago when the issue of immigration dominated the news and large sections of the Left were issuing concerns about the rise of reaction. Reports from the Spanish press also showed a majority of those polled(73%) favouring a general strike on the question of housing. There were even majorities in favour of a general strike amongst supporters of the right wing parties: 61% of PP supporters were in favour with similar proportions of support amongst Vox voters!
Sanchez and PSOE are incapable of offering a way forward, they are not the solution. As their record shows they are part of the problem. Racu, the Madrid Tenants leader explained why they are part of the problem when she described them as a party of Landlords, in other words they are wedded to the system. This is why sections of the working class have turned away from pro-capitalist politicians leaving a political vacuum in its wake. The Tenants movement could begin to fill that vacuum by offering a radical socialist vision of the future.
The mass movement has proven to be the key. The right to housing in Spain is established in Article 47 of the Spanish Constitution of 1978, which declares that all Spaniards have “the right to enjoy decent and adequate housing” but this is meaningless without a means and a will to enforce such rights. None of the pro-capitalist parties including PSOE attempted to lift their little finger. The state stood by when the Vulture fund landlord evicted Maricarmen, it was a mass movement of students, tenants and workers that fought back to get her tenancy reinstated at an affordable rent. It is this movement that has the potential to unlock a path to building a new force in Spanish politics which could transform the political situation.
Racu points out in Politico.eu on October 5th, “Eight days of people power have achieved more than eight years of progressive government,” adding that protesters would continue pressuring politicians “regardless of who governs this country.” This fighting approach is very welcome but it would be a mistake to draw the conclusion that a political party or coalition was not necessary or could not act as a serious pole of attraction for the hundreds of thousands that have participated in the demonstrations and protests or the millions who look to them and will be strike action on November the 11th when the entire trade union movement takes part in the first General strike supported by both major unions CCOO and the UGT for 14 years.
Spain is once more experiencing a period of tumultuous unrest on a par with the protests which paralysed Spain in 2011. However an important distinction between then and now is the fact that the mass movement against spiralling housing costs see their concerns as part of a wider struggle against the cost of living crisis and they see the Trade Union movement as their natural allies. Workers in Spain have been involved in a variety of battles over the last period, from dockers in Cadiz and La Coruna, care workers in Valencia, Airbus workers in Madrid, metal workers in Tarragona as well as students and Educators in Madrid. This represents a perfect storm not just for PSOE in their attempt to seek re-election but also for all the other pro capitalist parties including the PP and Vox.
These elections will solve nothing but the movement which has developed around the question of evictions and unbearable housing costs presents the working class with an opportunity to build a mighty alternative to the diet of public sector cuts, falling wages and rising rents. The revolt against the austerity of the last 20 years is raging across Europe. This will provide further inspiration to those struggling in Spain. The recent announcement from Sordo, leader of the CCOO, that the Portuguese unions were considering coordinating action by calling a general strike in Portugal on November 11th is a further step forward but why not go further? Unite the struggles across the whole of Europe by calling for a European General strike or day of action against austerity.
In order for the movement in Spain to take a decisive step forward all the social organisations, the students union, tenants unions and trade unions need to come together. That would also require a battle against the bureaucratic leadership of the major trade unions in order to give workers genuine control over their disputes and democratic control over their unions. They should convene special conferences in order to prepare for action both industrial and political to take the struggle forward, not simply one day strikes to let off steam. Democratic control of disputes and strikes. They need to develop a programme of struggle which includes;
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Freezing rents now.
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Develop democratic local Committees to enforce genuine rent control
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Outlaw evictions
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Indefinite rental contracts
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Nationalisation of the banks
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Expropriation of the homes controlled by the banks and vulture funds
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Mass public house building programme.
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No cuts to public services
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Rents linked to salaries
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Rents should not exceed 20% of the average wage
End Austerity now a fight for socialism, only socialism can guarantee an end to the misery of tenants on unaffordable rents, workers facing the cost of living crisis and students facing unaffordable fees and crumbling buildings.
