Housing crisis in Latin America and Spain

Various regions in Latin America and Spain are facing significant housing challenges, ranging from high debt to physical vacancy and rising rental costs.

In Paraguay, high levels of consumer debt are preventing middle-class families from accessing mortgage loans. By the end of the first quarter of 2026, bank-financed loans reached USD 30 billion, with consumer credit growing 40% compared to 2025.

In Argentina, the Instituto Provincial de la Vivienda (IPV) reported a paradox in Tucumán, where over 800 houses sit empty in the city center while 63,000 families await housing solutions. Similarly, in Treinta y Tres, Uruguay, officials are discussing how to utilize existing vacant urban properties to address the housing deficit.

Spain is experiencing intense pressure in the rental market. In Cádiz, rising costs are forcing residents to share apartments, with the demand for single rooms increasing by 20%. In the Costa Tropical region, housing costs for the average household have reached 42% of disposable income. Conversely, Galicia has emerged as a leader in public housing investment, with the Xunta de Galicia bidding out 400 million euros in public works to expand the social housing stock.