Home » Barcelona housing crisis: 30% social housing mandate throttles new home building

Barcelona housing crisis: 30% social housing mandate throttles new home building

new construction in Barcelona
New building has stalled in Barcelona

A recent report by the Architects’ Association of Catalonia (COAC) sheds light on the detrimental impact of Barcelona’s 30% social housing quota, which has stifled new development in the Catalan capital. With homebuilding at a standstill, the policy is being blamed for exacerbating the city’s already dire housing crisis.

Stagnant new construction

The numbers speak volumes. In 2024, just 1,066 new free-market housing units were approved in Barcelona, a figure largely unchanged from previous years. Despite the obvious demand for housing, developers are reluctant to launch new projects. This stagnation comes at a time when the city desperately needs more homes, adding fuel to an already critical housing shortage.

The 30% social housing mandate: a controversial policy

A key factor behind the slowdown, according to the COAC, is the city council’s 30% social housing mandate. This policy requires developers to reserve 30% of units in new projects for social housing—a move designed to address affordability issues but one that seems to be scaring off many in the construction sector.

“It is something controversial,” says Costa from the COAC. “Production has been reduced because many promoters have decided not to build.”

The figures tell a curious story. Of the 910 social housing units approved in 2024, only 12 were directly attributed to the 30% mandate. This raises questions about the policy’s real impact so far and whether its deterrent effect on developers outweighs its contribution to affordable housing.

A divided approach

The 30% mandate has become a political hot potato. Barcelona en Comú (BComú), the party behind the policy, remains committed to it and even proposes raising the requirement to 50%. Their argument? The city must prioritise affordability in the face of a housing crisis.

Meanwhile, the COAC warns that such measures could further discourage developers, ultimately reducing the overall housing supply—a move they argue would exacerbate the problem rather than solve it.

Land shortages and the push for rehabilitation

Compounding the issue is Barcelona’s “land saturation,” as highlighted by the COAC. With limited land available for new construction, the city’s options for expansion are constrained. As a result, the COAC advocates for greater focus on rehabilitation projects to make existing buildings more habitable and increase housing stock without relying on new land.

Falling behind the competition

Adding to Barcelona’s woes is an unflattering comparison with neighbouring cities. In 2024, Sabadell and Terrassa, two smaller cities combined, approved more housing units than Barcelona. This disparity underscores the sluggish pace of Barcelona’s housing market and raises questions about the effectiveness of its policies.

A delicate balancing act

The housing crisis in Barcelona is a complex puzzle. While the 30% social housing mandate seeks to address affordability, its perceived deterrent effect on developers and the city’s limited land supply complicate the equation.

The city faces a challenging task: balancing the need for more social housing with ensuring an adequate overall housing supply. Whether through policy adjustments, a greater focus on rehabilitation, or creative solutions to land constraints, Barcelona must find a way to navigate its housing crisis before the situation becomes even more critical.