Spain’s housing prices surge 15% as affordability plunges and government seeks new decree

New data show that Spanish home prices jumped 15.2% year‑on‑year in the second quarter of 2026 – the fastest rise since the 2006 housing bubble – while the median price of new housing reached €3,458 per m², a historic high. The rapid price growth pushed the theoretical effort ratio to 35.7% of a household’s disposable income, above the 35% threshold considered affordable, and prompted the Bank of Spain to consider tighter mortgage rules. Fourteen provinces, including the Balearic Islands, Madrid and Málaga, now exceed this threshold, with the Balearics reaching 57%.

The government’s housing minister Isabel Rodríguez appealed to parliament for “generosity” in passing a broad housing decree that would tighten rent regulation, protect vulnerable groups, curb tourist‑rental VAT, and accelerate public‑housing projects. Parallel reports from CBRE and Tinsa highlighted a strong revaluation of residential land and prime‑street assets, driven by chronic supply shortages and robust demand across regions, from Barcelona to the Costa del Sol.

Regional analyses show stark contrasts: municipalities such as San Sebastián de los Reyes and Sanxenxo face critical affordability, with effort ratios above 45%, while towns like Tortosa remain among the cheapest in Catalonia. The combined pressure on prices, mortgage costs and stagnant supply fuels a nationwide affordability crisis that affects millions of Spanish households.