The rental housing situation in Spain is set to worsen significantly this year, with 630,000 contracts signed in 2021 expiring, affecting 1.6 million people. Additionally, another 600,000 contracts will expire in 2027, doubling the number that ended in 2025. These contracts were signed during the pandemic years when many leases were agreed at reduced rates, and now, following a five-year surge in prices, they are notably below market value—by as much as 50% according to the Ministry of Consumer Affairs. The expiration of these contracts coincides with an extremely chaotic market characterized by exorbitant prices, an extremely limited supply, and harsh selection criteria for potential renters.

As families face the imminent end of these contracts, the implications are dire. Many will be thrust into a market that has become prohibitively expensive. With the cessation of these leases, cash-strapped families will find it challenging to secure new housing at rates they can afford. This situation has been exacerbated by a lack of affordable alternatives and growing uncertainty stemming from recent fiscal measures aimed at the rental sector, which, while positive in intent, have resulted in market confusion and anxiety about future regulations.

In light of these circumstances, the Spanish government may need to explore additional interventions to stabilize the rental market and protect vulnerable families. Without a strategic approach to address the repercussions of these contract expirations, the risk of homelessness for many families could increase, further deepening Spain's housing crisis. Authorities must act swiftly to ensure that the balance between landlords' needs and tenants' rights is maintained, thereby fostering a sustainable rental environment.