Faced with a more affordable cost of living and an enviable quality of life, Spain is attracting a growing number of European expatriates-even as its major cities struggle to house their own populations.
Spain remains one of the top relocation destinations for Europeans looking for a sunnier, more affordable, and better-balanced life. But behind the idyllic image lies a growing challenge: a deepening housing crisis, especially in major cities like Madrid, Barcelona, Valencia, and Seville, which affects both locals and foreign newcomers alike.
Demand for housing in Spain's largest urban areas is at an all-time high. Fueled by a steady influx of foreign residents, students, retirees, digital nomads, and a persistent tourism boom, the housing supply is failing to keep pace.
According to Idealista, Madrid's average rent has risen by over 16% in just two years, while Barcelona and Valencia have followed similar upward trends. Coastal cities such as Malaga and Alicante are also seeing double-digit increases. Contributing factors include the short-term rental boom, limited new construction, and fragmented housing regulations across regions.
