Housing

Spain’s Largest Cities Diverge Paths to Tackle a Housing Crisis

While Madrid is setting higher construction targets, Barcelona is pushing harder on regulation.

Barcelona and Madrid have different policy agendas to improve housing affordability. 

Source: Getty Images

As cities worldwide grapple with housing shortages, Spain’s two largest urban centers are taking sharply different approaches. Madrid is betting on large-scale construction and lower taxes, while Barcelona is leaning far more on regulation to curb prices, including a ban on short-term rentals.

Despite strong economic growth and job creation, both cities are struggling to ease housing pressures, underscoring a broader failure to accommodate a rising urban population.