Global housing affordability and supply crisis

A growing disparity between wages and real estate costs is driving housing crises across multiple regions. In Spain, housing prices rose 84.6 percent between 2015 and 2025, while average annual gross wages increased by only 27.85 percent during the 2015 to 2024 period. An Oxfam Intermón report indicates that housing expenses have pushed the working poverty rate to 15.49 percent, with the poverty rate reaching 34.08 percent for those renting from the market after rent is paid.

In Mexico, property prices increased by 108.5 percent between 2016 and 2025, while incomes grew by only 25 percent. This gap has fueled social demands for affordable housing in cities such as Mexico City and Guadalajara amid intensifying gentrification.

Supply shortages further exacerbate these issues. In Spain, an annual deficit of approximately 147,000 units exists, as only 93,000 homes are completed each year despite the creation of 240,000 new households. Experts suggest that closing the social and affordable housing gap in Spain would require approximately 270 billion euros in public and institutional investment. Although real estate investment in Spain rose by 25 percent in the first nine months of 2026, regulatory changes and land availability issues continue to hinder new housing supply.