

The supply of homes for sale in Spain is declining, with a 15% year-on-year drop in the final quarter of 2024—fueling fierce competition and soaring prices. What’s behind the crunch, and what does it mean for buyers?
The Spanish housing market has taken a notable turn for the worse, with the final quarter of 2024 marking a dramatic 15% year-on-year drop in the supply of homes for sale. This decline, reported by the property portal Idealista, is the steepest on record since the company began tracking housing stock. The shortage of available properties is expected to fuel further price pressures in an already competitive market, particularly as buyer demand shows no sign of waning.
Key findings: A nationwide crunch
The housing supply decline is widespread, affecting almost every major city and region across Spain. Girona stands alone as the only major city to buck the trend, with a modest 5% increase in housing supply. In contrast, cities like Zaragoza, A Coruña, and Oviedo have seen their available housing stock plummet by a staggering 38-40%. Even Spain’s largest cities, Madrid and Barcelona, have not been spared, experiencing reductions of 29% and 23%, respectively.
San Sebastian, while not as severely affected, still reported an 8% decline, making it the least impacted of the major markets. However, eleven provincial capitals—such as A Coruña, Oviedo, and Tarragona—have hit historic lows in housing availability, highlighting the scale of the shortage.
On a provincial level, Zaragoza has witnessed a 36% drop in supply, with Madrid following closely at 28%. Notably, Cáceres was the only province to show an increase, albeit a slight 1%, while Alicante and Jaén recorded the smallest decreases at 3% each.
What’s driving the supply shortage?
Idealista attributes the sharp decline in housing stock to a surge in buyer activity during the second half of 2024. This “rally” has depleted available inventory at record levels, leaving many markets struggling to keep up with demand. With low interest rates creating a favourable borrowing environment, the demand side remains robust, putting even more pressure on the limited supply.
Compounding this issue is the slow pace of new housing development. Even in high-demand areas, increasing housing stock is a challenge that cannot be addressed overnight. As a result, the imbalance between supply and demand is expected to persist into 2025 and beyond, driving prices higher and intensifying competition among buyers.
Implications for buyers and the market
The current supply crunch comes with several important consequences:
- Rising prices: With fewer homes on the market and sustained demand, property prices are likely to climb further, especially in popular urban centres and coastal regions.
- Tougher times for first-time buyers: Aspiring homeowners will face mounting challenges, with higher prices and limited choices making it increasingly difficult to step onto the property ladder.
- Regional disparities: While the supply decline is widespread, the degree of impact varies by region, potentially creating niche investment opportunities in areas less affected by the shortage.
- The need for action: Addressing the supply-side issue is critical. Policy measures and private-sector initiatives aimed at accelerating new builds and unlocking dormant housing stock could help alleviate price pressures. However, these solutions will take time to deliver meaningful results.
The road ahead: Continued price pressures
The combination of strong demand, low interest rates, and limited supply suggests that price pressures in the Spanish housing market are here to stay, at least for the foreseeable future. Idealista’s report anticipates that these trends will persist, with little relief for buyers until significant progress is made in increasing the housing supply.
For those considering buying or investing in Spain, navigating this challenging market will require careful planning and a clear understanding of regional dynamics. While opportunities still exist, competition is fierce, and prospective buyers may need to act swiftly to secure a property in this highly constrained market.
In summary, the Spanish housing market is entering 2025 with historic supply shortages, setting the stage for further price hikes and heightened buyer competition. Unless supply-side solutions are implemented swiftly, the current pressure on prices is unlikely to ease any time soon.