Málaga housing market crisis and rising homelessness

Málaga is experiencing a significant housing crisis characterized by a severe shortage of protected housing and rapidly escalating costs. As of early October 2026, approximately 13,500 families were on waiting lists for protected housing, a demand that exceeds existing supply by more than double. While the city is expected to possess the third-largest public housing park in Spain by the end of 2026, officials note these numbers still fail to meet urgent population needs.

Local government officials have proposed increasing supply through land availability and public-private promotions, while opposition groups and tenant collectives have advocated for price controls and stricter limits on tourist apartments. This shortage is reportedly impacting business competitiveness as companies struggle to house employees.

By mid-October 2026, data indicated that housing prices in the province had risen 64.5% since 2020, with average property values reaching approximately 3,149 euros per square meter. Rental costs have also climbed, with the average monthly rent for a 90-square-meter apartment reaching roughly 1,593 euros. This economic pressure has led to increased interest in mobile homes as an alternative, though local officials warn that such installations must comply with specific urban planning regulations.

By late October 2026, a report by the Social Inclusion Chair of the University of Málaga revealed a 63% increase in homelessness in the city over a two-year period compared to 2024. Researchers noted a trend toward chronic homelessness, observing that 62.3% of those interviewed were foreign nationals and the population is predominantly male.