Spain's housing crisis worsens: rents eat half salaries, taxes climb

In the Basque province of Bizkaia, 77% of tenants rent out of necessity, with rental costs swallowing about half of the median household income. The region has 1,872 protected‑rent homes under construction, far short of the 45,000 households waiting for affordable rentals, and market rents have risen roughly 40% over the past decade.

Nationally, analysts say the total fiscal charge on a Spanish home can reach up to 62% of its purchase price over the property’s life, due to a series of taxes and fees. Critics argue that the Sánchez government’s housing policies – including rent controls and delayed public‑housing projects – have discouraged new construction, reduced supply, and intensified price growth, especially for young people and low‑income families.