María del Carmen Abascal wanted to remain in her apartment. At 87, after more than seven decades in the same Madrid home, she probably thought she had demonstrated sufficient interest in the neighborhood.
Known as Maricarmen, she occupied an apartment in the Ibiza neighborhood of Madrid’s Retiro district. Cadena SER described it as 90 square meters—about 970 square feet, a reasonably substantial apartment in a desirable part of a major European capital—not a broom closet with a picturesque view of the plumbing.
Her family’s lease dated to 1956. It had passed from her father to her mother and then to her. Unfortunately, a family’s attachment to a home and the legal life expectancy of its lease are different things. The courts concluded that her protected right to inherit the tenancy had ended years earlier, with subsequent occupation continuing through tacit renewals.
The new owner, Urbagestión, wanted a new arrangement. Maricarmen reported a proposed monthly payment of €1,650. Her existing payment was roughly €440–€480, although the company said much of that covered community expenses, heating, and water, with the real base rent of only €204. Her pension was about €1,450. You don’t have to be a math wizard to see this poses something of a problem. You cannot spend €1,650 out of €1,450 unless you are a national government.
Before issuing the landlord a black cape and a mustache suitable for twirling, however, consider the other side of the ledger.
At September’s advertised rental levels, apartments in her neighborhood averaged about €26.10 per square meter monthly. Apply that to the reported 90 square meters, and the result is approximately €2,350. The broader Retiro district averaged €24, producing a figure of €2,160. On that basis, the proposed €1,650 was about a quarter to a third below the local benchmarks. These are rough comparisons, not an appraisal: condition, amenities, and the disputed floor area matter.
Nevertheless, “more than she could afford” and “more than the apartment was worth” are not interchangeable statements.
The company’s stated position was that it had offered a substantial discount from market rent after obtaining a favorable legal ruling. It also said it owned this apartment, rather than the entire building—a distinction somewhat trampled in the rush to describe the villain.
Why raise the rent? To obtain a larger return from the property. That is the financial explanation. I have not seen accounts proving that maintenance, taxes, or financing made precisely €1,650 necessary. But an owner does not have to be approaching bankruptcy to notice that an asset could earn considerably more.
Conversely, purchasing an occupied apartment is not the same as discovering an elderly tenant unexpectedly growing behind the refrigerator. The occupancy was part of the investment.
There were legitimate interests on both sides, which made the situation poorly suited to a political meme that would fit a bumper sticker.
On September 23, Maricarmen was evicted. The sight of an elderly woman being removed from her longtime home supplied the housing crisis with something statistics rarely provide: a sympathetic face. Thousands demonstrated, and protesters established an encampment in Madrid’s Puerta del Sol. The demands soon extended beyond one apartment to stronger protections for tenants generally.What the protestors probably don’t know is that under Spanish law, Maricarmen’s historic lease agreement, with a monthly rent set at a decades old low rate, expired eight years ago. During that time, instead of finding a cheaper neighborhood to live in, her lawyers used every possible delaying tactic since, legally, the rent was frozen at the last agreed upon rate until the court case was finally settled. When the case was finally seen in court, Maricarmen was promptly ordered to leave the building or pay the higher rate. She chose to remain until the police, armed with a court order, evicted her.
Eventually, negotiations produced an agreement allowing her to return under an eight-year lease, with her payment limited to 30 percent of her net income. Municipal intermediaries helped arrange it. The compromise protected her home without requiring everyone to agree about the entire Spanish housing market before handing back the keys.
The national government, however, had a larger set of keys in mind.
On September 29, it adopted emergency housing decrees that included protection against certain evictions of vulnerable households without alternative accommodation through the end of 2030, compensation for affected landlords, and extraordinary lease extensions. This was not a universal prohibition on evictions, although “qualified suspension subject to eligibility requirements” makes a disappointing protest chant.
The underlying housing problem certainly deserved attention.
Spain is often imagined as the place where northern Europeans go to enjoy sunshine, drink good wine, and spend less money. The sunshine and supply of wine remains relatively dependable. The housing bargain requires closer examination.
Spanish housing costs are not uniformly higher than those elsewhere in Europe. Eurostat’s 2023 comparison placed Spain near the EU average, well below Ireland and Denmark. But international price comparisons do not pay local wages into local bank accounts. A rent that looks attractive to someone arriving with a foreign pension can look appalling to someone earning a Spanish salary.
The Bank of Spain has specifically identified the heavy housing burden borne by renters. National averages blend their experience with that of established homeowners, including people who paid off their mortgages years ago. Averaging those groups together is rather like calculating the swimming ability of passengers and lifeboats.
Nor is this simply a matter of greedy landlords discovering greed last Tuesday.
The Bank of Spain estimated that new household formation exceeded completed new homes by roughly 400,000–450,000 during 2022–2024. That does not mean all those households were homeless. It does mean that substantially more households were competing for accommodation than new construction was providing.
A substantial and growing share of these new households—especially immigrants and young people—enter the rental market rather than buying. In contrast, only about 90,000–100,000 new homes are completed annually, and the number of purpose-built rental (Build-to-Rent) apartments is far smaller, typically in the low tens of thousands at most.
This creates an annual shortfall of around 130,000–160,000 housing units overall, with an even tighter gap in the rental segment. The cumulative deficit since the early 2020s is estimated at roughly 750,000 homes and could exceed one million by 2028 if construction does not accelerate sharply. The imbalance is concentrated in high-demand areas such as Madrid, Barcelona, Valencia, and the Mediterranean coast, and it continues to push up rents while shrinking the stock of available long-term rental apartments.
The European Commission points to obstacles including construction labor shortages, development delays, and insufficient development-ready land. Spain also has a small social rental sector: roughly 1.5–1.7 percent of households, compared with about 6–7 percent across the EU. Meanwhile, Spanish home prices rose 12.7 percent in 2025 and will likely continue to rise sharply. There is plenty of demand and a decidedly inadequate supply of affordable alternatives.
Into this situation comes rent control, carrying a clipboard and promising to magically improve the arithmetic.
Spain limits certain annual rent increases and permits additional restrictions on new leases in officially designated high-pressure areas. These are not identical rules imposed on every apartment throughout the country. The distinction matters, although it does require politicians to use more than six words.
Rent controls can help the tenant who already has a covered apartment. The difficulty is for the person still looking for one.
If a regulation reduces the expected return from offering a rental, some owners may sell, pursue another permitted use, or decide that becoming a landlord is an ambition best left unrealized. Developers considering rental housing make similar calculations. The strength of that effect depends on the rules, exemptions, costs, and other incentives; it is not proof that every rent restriction stops every construction project.
Still, the government ordering a lower price does not magically create more apartments. Building apartments is the result of a business decision and if the government eliminates the chance of profits, that decision is never going to be positive.
Catalonia’s figures show moderation in registered rents under its controls. Preliminary research also suggests a reduction in new tenancy agreements, although the researcher acknowledges limitations. Both outcomes can occur together: better terms for some tenants and fewer opportunities for others.
A sensible policy must therefore answer two questions: how to keep vulnerable people housed today and how to provide enough homes tomorrow. Answering the first by ignoring the second is how a temporary emergency acquires commemorative anniversaries.
Meanwhile, Maricarmen had her agreement, the demonstrators had forced national attention, and the government had announced a ban on evictions until 2030.
There was just one remaining, niggling detail.
Today, on October 2, the Spanish Parliament rejected the eviction bans. Several small political parties banded together and supplied the opposition necessary to defeat the eviction bar. Among the objections was the argument that the measures would further discourage rental supply.
The promised protection through 2030 had failed its parliamentary vote three days after its announcement.
Maricarmen’s eight-year agreement suddenly looked considerably more durable than the government’s solution.
Maricarmen has a lease. It was the government policy that had a short-term rental.
This is a victory for one elderly woman in Madrid. Her landlord, Urbagestión obviously figured out that the bad publicity was more expensive that the loss of a single apartment’s rent. In the long run, Urbagestión is a winner, too.
But across Spain, the companies that build rental units have carefully watched all of this and have concluded that the cost of construction has just gone up again.










