New housing starts concentrated where glut is biggest

Where are they building the most new homes in Spain today? In those areas where the glut of new homes is biggest, new stats reveal.

Housing starts are highest in regions like Andalucia, Valencia, and Catalonia, where surplus inventories (as a percentage of the total) are the biggest. The Valencian Community leads the way (19% of the glut), followed by Andalucia (16%) and Catalonia (15%) (see map above).

Why are the regions with the biggest surpluses also building the most? Some housing market experts say it is because those regions have too many of the wrong sort of homes (holiday homes) and not enough of the right sort (affordable primary residencies) – a glut and a shortage at the same time.

That said, new housing starts are at historic lows all over Spain, so they won’t make the glut much worse than it is already.

SPI Member Comments

Leave a Reply

Facebook Comments