Housing Crisis in Spain and Italy Goes Beyond Holiday Rental Boom

Residents in both countries say there is no easy solution to rising costs and a worsening housing shortage.

A row of houses in Pamplona, Spain, on April 5, 2025. Autumn Spredemann/The Epoch Times

Residents in Spain and Italy, two of Europe’s most popular vacation destinations, are struggling to make ends meet amid a dire shortage of affordable long-term housing.

According to research from the European Central Bank and the Bank of Spain, the Spanish housing crisis has its roots in a collapse of the real estate bubble in 2008, followed by a lag in new construction until 2023.