The Human Cost: Evictions and Uncertainty

Barcelona, a city celebrated for its architectural marvels and vibrant culture, is facing a severe housing crisis. The surge in tourism and foreign investment has exacerbated existing inequalities, pushing affordable housing out of reach for many long-term residents. the story of Marga Aguilar, 62, exemplifies this struggle. For 33 years, ms. Aguilar reliably paid rent on her apartment in Casa de la Papallona, a Modernist building distinguished by its mosaic butterfly sculpture. The previous owner maintained reasonable rents and treated tenants like family. However, upon his death, a Dutch investment fund acquired the building, intending to convert the apartments into lucrative short-term rentals. Ms. Aguilar and other tenants received eviction notices, demanding their departure within a month.

My legs started to buckle, Ms. Aguilar recounted, whose 92-year-old father now lives with her. We don’t know where we’re going to go — we can’t afford to live anywhere else.

A Widespread Problem: Spain’s Housing dilemma

Spain’s housing crisis has intensified rapidly, becoming one of Europe’s most pressing issues. As 2015, investors have acquired or converted nearly 10% of the nation’s housing stock into tourist rentals. This scarcity has driven prices up faster than wages, rendering affordable homes unattainable for many. Barcelona has emerged as the epicenter of this crisis, presenting complex challenges in finding viable solutions, especially with the summer tourist season approaching.

The Bigger Picture: European Trends and Inequality

Barcelona’s struggles reflect a broader trend across European cities,where residential real estate is increasingly treated as a financial asset. The rise in global tourism and cross-border workers has incentivized landlords to favor short-term rentals over long-term tenants. While cities require more housing, high costs and complex regulations have hindered construction. Furthermore, the stock of social housing, once a vital resource for struggling families, has diminished due to government sales aimed at raising capital.

According to Eurostat, rents in the European Union have increased by 20% over the past decade, while house prices have surged by 50%. In 2023, 1 in 10 Europeans spent at least 40% of their income on housing, highlighting the affordability crisis as a major driver of inequality.

Seeking Solutions: Government and Activist Responses

In response to the escalating crisis, Ursula von der Leyen, president of the European Commission, recently appointed Europe’s first housing commissioner. In Barcelona, Mayor Jaume Collboni has joined forces with leaders from 14 other European cities, including Amsterdam, Budapest, Paris, and Rome, urging the European Union to address the housing crisis with the same urgency as the defense of Ukraine.

Europe is facing a threat on our borders from Russia’s aggression, Mr.Collboni stated. But we are also facing an internal threat, which is rising inequality due to the lack of affordable housing.
Jaume Collboni, Mayor of Barcelona

Mr.Collboni, a Socialist politician elected in 2023, implemented rental price caps in March, resulting in an average rent decrease of over 6%. Barcelona will also become the first european city to eliminate licenses for Airbnb homes by 2028,requiring owners to offer them as long-term rentals at capped rates or sell them.

In one shot, boom: We’ll put 10,000 flats back on the open market, Mr. Collboni said. That’s nearly 25,000 people who will be able to live in Barcelona again.

The Catalonia government plans to collaborate with developers to construct 50,000 affordable homes by 2030 and expedite construction permit approvals. When the market is broken, you need to intervene, said Salvador Illa, the president of Catalonia.

However, housing activists argue that these measures fail to address the immediate crisis. Thay advocate for compelling landlords and banks to utilize the estimated 4 million empty homes in Spain for long-term rentals.

People are being forced out of their homes every day,and this is an immediate solution, said Max Carbonell,a spokesman for the Socialist Union of Housing in Catalonia. Why build when you have housing that’s already there?
Max Carbonell, Socialist Union of Housing in Catalonia

Conflicting Perspectives: regulations vs. Property Rights

Barcelona’s authorities have explored various strategies to protect renters, including purchasing buildings from investors. Last year, the city spent €9 million to repurchase Casa Orsola, a historic residence acquired by Lioness Inversiones in 2021 for €6 million. However, this move faced criticism from housing activists and renters who argued that it rewarded investors profiting from taxpayer money.

Property owners contend that regulations have become excessively protective of renters, leading many owners to leave homes vacant. There is a lack of housing because developers, homeowners and landlords have been criminalized, said Jesús Encinar, the founder of Idealista, Spain’s largest real estate search website.

mr. Collboni described a national law allowing investors to convert buildings into temporary rentals as a black hole. Prime Minister Pedro Sánchez has proposed a bill to repeal the law, but it faces opposition from lawmakers concerned about property rights.

Specific Cases: Investor Actions and Community Impact

New Amsterdam Developers, which acquired Casa de la Papallona (also known as Casa Fajol), has purchased hundreds of apartments in Barcelona for temporary rentals, often targeting buisness travelers. In another instance,Inmobiliaria Gallardo exploited a loophole in Catalonia’s housing laws to convert all 120 apartments in an 11-story building into tourist rentals.

we noticed one day that some of our neighbors were moving out, then more and more — in one week, 10 people left, said Maite Martín, 63, a university employee who has lived in the building for 25 years.

Ms. Martín described the impact on her community: This was a community of families and older people who lived here for decades. That fabric is being destroyed. She recounted incidents such as having to clean vomit from partying tourists off her laundry.

Protests and New Construction: A Path Forward?

Residents of buildings like Casa de la Papallona and Ms. Martín’s apartment complex, aided by housing unions, have chosen to remain in their homes as a form of protest. Occupying properties has become a grassroots movement in spain, especially in Barcelona, to protest the housing crisis. However, this movement has faced backlash, and the Catalan government has sought to counter it.

Amid the ongoing turmoil, the government is proceeding with new construction projects. On a hill overlooking Barcelona, workers are constructing a five-story building with 15 energy-efficient, rent-capped apartments.Carles Mas,an architect for the Catalonia government,stated that 30 similar projects are in growth as part of a broader plan to expand social housing.We need to find ways to move faster, he acknowledged, emphasizing the urgency of the situation.