Spain postpones housing decree amid supply crisis and local requests

The Spanish government has postponed the approval of its new housing decree until September, citing a lack of parliamentary support to ensure its passage in Congress. This delay highlights ongoing challenges in addressing the national housing crisis.

Experts and the Bank of Spain suggest the crisis is structural, driven by a lack of housing supply, scarcity of developable land, slow urban planning, and administrative delays rather than a lack of regulation. Critics argue that focusing on rent controls and fiscal burdens fails to address the core issue of insufficient residential production relative to demand.

In the Alicante province, the municipalities of Dénia and Petrer have requested that the Generalitat declare them 'stressed zones' under Law 12/2023. Such a designation would allow for measures like rent caps and contract extensions. However, local officials report a lack of response from the regional housing department regarding these requests.