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Spain·Trade & Economy·Protests·Democracy

Spain's housing crisis deepens as parliament rejects government measures[Updated]

Saturday, 3 October 2026, 06:07 · 2 min read
Updates
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Tens of thousands of people joined demonstrations in more than 50 Spanish cities on Saturday, with the largest in Madrid. Authorities put turnout in the capital at 70,000, while the city's Tenants' Union claimed 500,000, and the union has called for a general strike. Protests were largely peaceful, but in Valencia at least nine police officers were injured when demonstrators broke through a cordon at a real estate investment conference; police reportedly fired rubber bullets and one person was arrested. A large march planned for Barcelona was postponed to Monday because of severe weather. Spanish media reported that Sánchez may call a snap election for November and is watching the strength of the protests before deciding, while Abascal is set to return to her home after reaching an agreement with the company that owns the property.

Sources
Original story

Spain's Congress of Deputies on Friday rejected two emergency housing decrees put forward by Prime Minister Pedro Sánchez's government. The defeat deepens a political standoff as a nationwide protest movement over rents and evictions continues to grow. The first decree was defeated by 178 votes to 172, and the second by 184 to 166.

The decrees were drawn up in haste after public anger over the eviction of Maricarmen Abascal, 87, who uses a wheelchair and had lived in her Madrid home for 70 years. She was unable to afford a 230% rent increase demanded by the investment fund that bought her building. The first decree would have suspended evictions of vulnerable tenants until 2030, extended expiring leases by two years, raised taxes on tourist apartments and restricted purchases of homes by so-called "vulture funds". The second, more contentious text included automatic renewal of rental contracts, a long-standing demand of tenants' groups and the left.

The conservative People's Party, the far-right Vox and the Catalan pro-independence party Junts all voted against. The People's Party argues that building more homes, not regulating the market, is the answer. "Housing doesn't become more affordable through decrees; it becomes more affordable by building more homes," said its lawmaker Juan Bravo. Opponents also warn that intervention could deter owners from renting out property and push prices higher. Junts, which had been seen as a possible swing vote, said the decrees were hastily written and lacked rigour. Its spokesperson, Miriam Nogueras, argued they would let funds keep buying and speculating.

Sánchez, whose Socialist-led coalition lacks a majority in the 350-seat chamber, had pleaded with lawmakers to "do the right thing, or history will judge you". Social Rights Minister Pablo Bustinduy, from the junior coalition partner Sumar, called Junts' position "political suicide" and said the next election would be "a referendum on housing".

Outside parliament, hundreds of protesters chanted "shame" and "your profits, our misery". Housing costs are a central grievance: according to figures cited by The Guardian, rents have risen 80% in a decade and home prices 63%. The Youth Council of Spain says the average rent of €1,176 a month equals 98.7% of the average salary for under-30s. A protest camp in Madrid's Puerta del Sol plaza grew from 10 tents to more than 1,200 in a week. The Tenants' Union said it would leave the camp and take the fight to neighbourhoods across the city, while calling for a general strike. Demonstrations were planned nationwide for the weekend.

The vote increases pressure on Sánchez to call an early election, due by August 2027. Spanish media report that he is consulting ministers and party colleagues and may decide as soon as Monday, after gauging the strength of the weekend protests. His government has been weakened by scandals and judicial cases involving his party and allies. Opposition leader Alberto Núñez Feijóo of the People's Party said Sánchez should "set the date" and let Spaniards vote.

Sources
BBC World — Spanish PM Sánchez loses key housing crisis vote after eviction of woman, 87 ↗︎El País — Pablo Bustinduy: “Las elecciones, cuando sean, van a ser un referéndum sobre la vivienda” ↗︎El País — Sánchez mide el alcance del malestar social contra la derecha para decidir si convoca ya elecciones ↗︎Folha de S.Paulo — Congresso derruba decretos de habitação, e Sánchez estuda antecipar eleições na Espanha ↗︎The Guardian — Spanish right wing votes down housing crisis plans as protest movement grows ↗︎
Also covered by
El País [1] [2] [3] [4] [5] [6] [7] [8] [9] [10] [11] · Euronews · France24 [1] [2] · NOS Nieuws · RFI · taz [1] [2] · VRT NWS
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