Spain has a MAJOR housing problem 🏚️🇪🇸

Rent prices in Spain are unaffordable for many people, especially in major cities like Madrid and Barcelona, with many young people spending more than 50% of their income on housing. In this video I explore some of the factors contributing to the high rents in the country, and whether the situation can be remedied.

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Mentioned in this video:

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Chapters:
0:00 - Intro
0:38 - The growing crisis in Spain
3:10 - Inflation in Spain
4:07 - Shortage of housing & high demand
5:50 - Empty properties and available properties for rent
7:11 - Legislation and protection for landlords and tenants
8:12 - Demographics & financial capacity
10:07 - Can the situation be fixed?

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About me:

Welcome to Millennials With Money!

My name is Jonny, I'm a financial analyst from the UK, currently living and working in Spain.

I created this channel to help and inspire young people to improve their financial situation and live life to the full by sharing my own experiences with money and living abroad.

I upload content on a weekly basis about personal finance, how to invest your money, tips to help you save more money, real estate and property, and travel and living overseas.

Everybody is welcome in the Millennials With Money community! Let's get this money!!!

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#spain
#spanishproperty
#housingcrisis

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DISCLAIMER: The opinions and views shared on this channel are for entertainment and educational purposes only and are not to be taken as financial advice. Always conduct your own research prior to making any financial decision. Millennials With Money cannot be held responsible for any financial loss incurred from any decisions you make following this video.

[MillennialsWithMoney]

Do you think there is a solution to the housing crisis? Leave a comment and let me know!

[mannye]

As a resident of Miami Beach, I can tell you first hand that short term rentals ruin the housing market for everyone. It was originally seen as a neat way for homeowners to help make ends meet, but in reality what happens is entire buildings are bought out and converted to short term rentals. This reduces the available housing inventory and raises prices to unaffordable levels. Combine it with corrupt local government officials and it's a recipe for disaster. I am currently looking to buy in Madrid and I'm surprised at the high prices compared to just a few years ago.

[frmcf]

I think you make a very good point at the end there. Not to say that it isn't difficult, but to a certain extent it is people's choice to spend 50% of their income on a room in a desirable area rather than spending less or having their own place further out. In the case of Barcelona, it's a massive bunfight in the centre, but you can *buy* a not-horrible flat in Esplugues de Llobregat or Sant Adrià de Besòs for 120–150k. If you really are stuck renting, there are cheap rooms, but you're unlikely to find an affordable place to yourself anywhere near the city. Hasn't it always been like that though? I lived in Manchester for most of my twenties, never had a place to myself, and never lived near the centre.

[guerreroceltibero]

It is important to mention that if you want to buy your first house in Spain, you have to pay the 10% of the "valor de referencia" or the price of the house (the highest of the two). This is called ITP (second hand) or IVA (new houses). This percentage can vary depending on your age and autonomous community, but is still very high. And remember that the majority of banks can give you the 80% so it is necessary to have the 20% too.

[fionaxie]

the issue is not only high rental prices, it's high price for a quite old and shitty apartment yet with a few hundreds of applicants within an hour, never seen anything like this. Coming from Asia and have lived in five countries, this is new

[ChrisM]

The "bono de alquiler" will only make things worse. It will make rent more expensive as the supply of people seeking to rent will rise but the underlying problem will still exist. They need to build more, there is no other solution. Great video, I enjoyed it!

[quirky-smooths]

What do you think about the anti foreigner sentiment in some places like Valencia and Barcelona? I mean in this context. Lots of people blame tourists and foreigners for high property prices.

[Chinedu]

Can you mention a couple of the 95% mortgage banks, the money required is just too high considering the tax as well

[nicus]

AirBnb is the main source of this problem, the second one is legislation. Why bother with "ocupas" when you can make more money with short term rentals and lower risks?

One solution would be to limit the number of short term rentals, the next should be some kind of insurance paid by tenants when renting a property that would compensate the landlords in case of unpaid rent.

[UnbelievablePersistent]

Is now a good time for foreigners to purchase a holiday home in Spain sir?

[fernandocardenaspiepereit]

there are some things which could be done: 1. Ban foreigners or in minimum non-EU citizens from buying properties in Spain. There are too many rich foreigners who buy in to the market, which drives prices up.Especially in the coastal regions this is a problem. The city of London has the same problem. No, this is not everywhere a problem. 2. In general really living somewhere should have priority over just having a property somewhere just to use for 2 months. Those properties are empty for 10 months a year. Especially in the more touristy regions some places are ghost towns for most of the year. 3. In general property is the only real commodity which can not be inflated like currencies. The government should try to have a program so that all citizens can have property and be able to live rent and mortgage free.

[victor________]

Banning short term rentals is definitely a great idea, I love the anti AirBnB movement

[heliotrope_]

I own an appartment in Spain and I don't rent it. Why? Because of the little protection landlords have in Spain. It's just not worth the risk or headache I could have to go through. It's just ridiculous, they try to protect tenants but they actually harm them. The problem is that they are using all communist approaches to solve this, with laws to protect tenants and then giving them money, instead of creating a real economy, real jobs and attract industry and investment. Spain needs to realise communism just does not work.