Spanish and Italian housing crises spark political instability
The latest in this situation
- Popular Party opposes government housing measures; Isabel Rodríguez is interim Housing Minister.
- Government passes housing decrees and PM defends strike amid housing crisis.
- Protests in Barcelona and Madrid coincide with political speculation about a Vox/People's Party coalition.
- Primark and H&M stores were shuttered in Madrid and Barcelona during ongoing protests.
- Sánchez called elections after housing plan failure, amid Madrid/Catalonia disruption.
How it started
Housing Market Strains in Italy and Spain Cited as Economic Headwind
What happened
Housing is cited as the biggest concern in Spain, with 40 percent of citizens identifying it as the country's most serious problem, according to the Centre for Sociological Research. In Spain, the Bank of Spain noted that residential supply has inadequately responded to demand growth in major cities like Madrid and Barcelona. Meanwhile, in Italy, rising rents are affecting households, with some tenants reporting that rent consumes more than half, and in some cases almost all, of a salary.
From thelocal.it, thelocal.es, euronews.com
Why it matters
The housing market strains in both Italy and Spain are viewed as shared economic headwinds, with the situation in Spain being compared to Italy as a cautionary tale. The problem is compounded by the persistence of homes used for tourist or short-term rentals, which limits residential supply.
From thelocal.it, euronews.com
Who's involved
- ItalyCountry facing rising rental costs and being compared to Spain's housing crisis
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- ItalySpeculative
Households in Italy might face reduced disposable income due to rising rental costs
How it developed
Newest first. Tap a step to see who reported it.Tourist lets and housing shortages in Spain are cited as a cautionary tale for Italy.1 source
- The housing crisis in Italy, including Cosenza, is being reported and compared to Spain's situation.Sub-event
- Major economies, including those in the Eurozone, are under pressure due to economic slowdowns, particularly regarding China's demand and Spain's housing crisis.Sub-event
- Rising prices and housing costs are currently affecting households in Spain.Sub-event
Italy and Spain are facing shared economic headwinds, including housing market strains.1 source