Boomers may own most of Spain’s homes, but that hasn’t stopped them from leading the wave of pessimism about the future of housing access. A new survey finds that spirits are low across generations — but especially grim among homeowners of a certain age.
The Spanish housing crisis is no longer just a matter of affordability — it’s a psychological burden weighing on public sentiment across every demographic. According to the latest 5D Barometer survey from pollster 40dB., nearly half (48.2%) of Spaniards believe that fewer people in their immediate circle can now afford to buy a home compared to six months ago. Only 10.3% think more can.
But here’s the twist: it’s the older generations, not the most financially constrained, who are the most pessimistic.
Boomers lead the downturn in housing confidence
Among respondents aged 60 and over — comprising baby boomers and members of the so-called silent generation — only 5.6% felt conditions had improved in terms of homebuying ability within their social circle. That’s significantly lower than the 21.7% of Gen Z (aged 18–27) who offered a more hopeful view.
This may seem paradoxical considering boomers are vastly more likely to own their homes. In fact, 80% of Spaniards over 65 possess property, compared to just 32% of under-35s, according to the Bank of Spain’s latest Household Finance Survey. But experts say this generational wealth gap does not immunise older citizens from pessimism — far from it. Their views are often coloured by memories of previous economic cycles and a general discomfort with the direction of the market.
In contrast, young people, though materially worse off, tend to be more optimistic — they haven’t yet been burned by mortgage defaults or prior recessions, and many still believe in the possibility of upward mobility. Still, even among Gen Z, over 41% say it’s harder to afford a home today than just a few months ago.
A housing market with no exit signs
The malaise is warranted. Spain’s average house price has hit an all-time high in 2024 at €2,086 per square metre, surpassing even the pre-crash levels of the last housing bubble. The price surge has been relentless: home values rose another 12.3% in Q1 of this year, more than double the eurozone average of 5.4%.
At the same time, 2023 saw the highest number of home purchases since 2007, a holdover of pandemic-suppressed demand released in a frenetic wave of activity. But the market has since cooled, and many aspiring buyers are now priced out — unable to save for a deposit or qualify for mortgages, especially as interest rates remain elevated.
And the rental market is no safe haven either. Soaring rents and scarce supply have pushed housing costs beyond what most young wage earners can afford, with increasing numbers forced into flatshares, sub-rentals or remaining in the parental home well into adulthood.
Across income levels, pessimism bites
Perceptions are bleak not only across age groups, but also socio-economic classes. Only 12.4% of respondents in the upper-middle class said they noticed more people around them buying homes — dropping to 8.2% among the broad middle class and 9.4% among the working class. In every economic bracket, more than four in ten respondents saw a decline in access to ownership within their community.
Geography matters, too. Large cities like Madrid and Barcelona offer marginally more upbeat vibes (11.3% think things have improved) than towns of 10,000 to 20,000 residents (just 9.4%). But across every type of municipality, more than 44% reported worsening conditions for homebuying.
Housing registers lowest confidence of any economic area
The 40dB. 5D Barometer does more than track perceptions of housing — it poses quarterly questions on five dimensions of personal finance: consumption, savings, investment, employment, and housing. Each receives a confidence score from 0 to 100. A score of 45–60 signifies stable expectations, 30–45 indicates moderate pessimism, and below 30 points to severe concern.
In the latest round (April–June 2024), housing scored just 31 — the lowest of all categories, and teetering on the edge of full-blown alarm. Only employment came close, with a rating of 42.9. The aggregate economic climate index, by contrast, stood at a relatively stable 46.3 — suggesting that while Spaniards are ambivalent about most parts of the economy, housing is where the gloom truly deepens.
Looking to the future
The persistent rise in prices — now driven more by chronic supply shortages than speculation — suggests that optimism likely won’t return without structural reform. And while younger respondents may retain a romantic notion of eventual homeownership, reality is already catching up with them.
Whether policymakers can turn that mood around depends on more than sentiment. Without meaningful increases in housing supply — particularly affordable housing — and clearer affordability pathways for younger and lower-income buyers, pessimism may soon become the only truly multigenerational feature of the Spanish housing market.
