Housing Crisis in the Iberian Peninsula: What Do the Numbers Say?

A new study prepared by the Bank of Spain revealed the extent of the housing crisis in Portugal and Spain. According to the data also brought to the agenda by the Financial Times, this deadlock in the Iberian Peninsula is not just about price increases; There is a very clear supply gap. Research results reveal that Portugal built 300,000 fewer houses between 2021 and 2025 in response to the increasing needs of the population. This deficit corresponds to 6.6 percent of the country's total households last year. By comparison, the average housing deficit across the entire eurozone remains at just 0.5 percent. The situation is not much different in neighboring Spain; There, too, the housing deficit has reached 750,000 units (3.7 percent of households). While the increasing population and migration waves in the region push demand upwards, the failure of new projects to keep up with this pace increases the pressure on the market day by day. Source: Financial Times