Cantabria has experienced a dramatic contraction in its real estate market, with more than a third of listed homes disappearing in the months following the implementation of Spain’s new Housing Law. Regional housing officials and property experts warn that current regulations are fuelling insecurity and obstructing market recovery.
Alarming drop in listings blamed on new housing legislation
According to Roberto Media, Cantabria’s Minister for Development and Housing, property supply in the region shrank by 37.2% in the months after the Housing Law of 2023 came into effect. This “disturbing fall” in listings, he claimed, reflects growing discomfort among property owners, driven by new obligations and economic disincentives introduced under the law.
Media didn’t mince words, calling the legislation “regrettable” and identifying it as one of the main obstacles currently fuelling Spain’s housing crisis. He also estimated that roughly 50,000 homes in Cantabria are currently standing empty—not because there’s no demand, but because owners are wary of renting them out.
“We’re facing a climate of legal uncertainty,” he explained. “Owners are simply reluctant to rent out their properties for fear of occupation and weak protections.”
Broader concerns echoed by other regions
Cantabria is not alone in its criticism. Housing officials from several autonomous communities have voiced similar frustrations in recent weeks.
Sebastián Fernández, Secretary of Housing in the Valencian Community, described the legislation as “the final nail in the coffin” for an already ailing rental market. “These measures discourage homeowners from even considering making their property available to renters,” he said.
Mario Muñoz-Atanet, Deputy Minister of Housing in Andalusia, also weighed in, saying, “The interventionist regulation we’re seeing from the central government simply doesn’t help.” He highlighted Spain’s high taxation levels, asserting that “taxes now make up 30% of a property’s total price.”
Private construction grinds to a halt
Adding to regional frustrations is the near-total paralysis in the development of subsidised housing. Roberto Media revealed that no new social housing units have been developed in Cantabria by private firms in the past twelve years. And the public sector hasn’t fared much better—no state-backed social housing has been built in the last five years either.
Media argues the solution lies in closer cooperation with the private sector:
“The administration alone can’t fix this crisis. If we want results, we must partner with developers and investors.”
Aragón’s Housing Minister Octavio López seemed to agree. His region has launched more than 2,100 public housing units in the past 20 months, which he attributes to the success of public-private collaboration.
Supply failing to keep up with demand
But even in regions where initiatives are moving forward, challenges remain. In Castilla y León, Director General of Housing María Prado recently stated that all planned developments in the pipeline would only meet around 16% of current housing demand. In short, supply remains woefully insufficient.
These regional statements add to growing national tension over Spain’s housing strategy. Although the Housing Law aimed to curtail rent inflation and protect vulnerable tenants, critics argue it has instead paralysed supply and chilled investor interest—without meaningfully improving affordability.
The way forward?
The broad consensus emerging from regional governments is clear: the state cannot resolve Spain’s housing crisis alone. Without meaningful incentives for property owners and developers to re-enter or expand in the market—and without revisiting elements of the Housing Law widely seen as counterproductive—Spain risks watching its housing shortage deepen.
For now, Cantabria stands as a cautionary tale of unintended consequences: where legal reforms drove 37% of homes off the market, and 50,000 more sit idle amid a worsening affordability crisis.
