Spain Faces Rising Overcrowding Amid Escalating Housing Crisis

Spain is witnessing a significant rise in overcrowded housing conditions amid a deepening housing crisis exacerbated by soaring rental prices and increasing immigration. According to recent Eurostat data cited by Xataka, the overcrowding rate in Spain jumped from 5% in 2010 to 9.1% in 2024, marking a 75% increase since 2009. Currently, about 4.4 million Spaniards live in overcrowded homes, where the number of residents exceeds the space available for comfortable living.

This increase in overcrowding is largely driven by a surge in rental costs, which have risen by 10.9% in the past year, and a growing population that reached a historic 49.3 million in mid-2025, primarily due to immigration. The issue disproportionately impacts renters and immigrants, notably young Spaniards who often share living spaces or move back in with family. Despite this, single-person households have also grown, highlighting shifting demographic and cultural trends.

The overcrowding level in Spain remains below that of Italy (23.9%) and Germany (11.5%) but shows a concerning upward trajectory compared to other EU countries. These pressures reflect the broader challenges Spain faces in ensuring adequate and affordable housing.

Meanwhile, the Banco de España is considering regulatory measures to curb risky mortgage lending that could potentially inflate a housing bubble. Nearly 12% of new mortgages currently exceed 80% Loan to Value (LTV), the highest rate in six years. The bank aims to introduce borrower-based restrictions to limit mortgage risks without hampering access to credit, especially for young people hard-hit by housing unaffordability. The European Central Bank supports such restrictions, which Spain and neighboring countries have yet to firmly implement.

This twin dynamic of rising overcrowding and regulatory scrutiny over mortgage lending underscores Spain's urgent need to address housing affordability and availability to prevent further social and economic strain.