# Spain's housing supply hits critical shortage 5 October 2026 at 08:25 > New construction in Spain remains far below 2006 peaks as land scarcity, high costs, and regulatory hurdles stifle the housing market. **Spain**'s housing supply has plummeted since the 2006 peak of 760,000 starts, falling to 617,000 in 2007 and 159,000 in 2009. By 2013, construction hit a record low of 35,000 units. Current developments largely target high-income earners and foreign buyers. The shortage stems from land scarcity, rising costs, and labour deficits, alongside slow bureaucracy and excessive regulation. Institutions have declined to activate official housing protections, while investors remain hesitant to commit to new construction. A shift from industrial to financial capitalism sees banks demand high mortgage guarantees while favouring venture capital. **SMEs** face high capital costs, as firms like **AQR Capital Management** use complex schemes to indefinitely postpone taxation on gains. [#SpainHousing]() [#RealEstate]() #HousingShortage #Construction [#PropertyMarket]() ## Related news ## [Spain orders removal of 8,318 illegal rental ads]() 23 October 2026 at 09:38 ## [Spain faces deficit of 750,000 homes]() 22 October 2026 at 16:11 ## [Evictions in Spain drop by 35.7% in Q2 2026]() 16 October 2026 at 13:37 ## [Spanish Congress to vote on new housing decrees]() 1 October 2026 at 13:51 ## [Spain faces one million home deficit by 2028]() 24 September 2026 at 17:50