Economía Digital | The price of housing was growing at 3.6% a year ago and has shot up to 7.8%. The lack of supply still means skyrocketing prices
Although there are many factors behind a market as complex as the housing market, the truth is that the effects of the Housing Law passed a year ago by the Government are striking: only one year later the increase in market prices has doubled: if the cost increased at a rate of 3.6% in the second quarter of 2023, it has shot up to 7.8% between March and June of this year.
With data from the second quarter, the price of new housing has shot up 11.2%, the highest rate since the third quarter of 2007, when the real estate market was already showing signs of being on the verge of bursting. The growth rate a year ago was 7.7%.
But second-hand housing is also accelerating at a rate of 7.3%, well above the 2.9% at which it advanced only a year ago.
Idealista, the real estate portal, points out that, according to its data, there are 6% fewer homes for sale in Spain than a year ago, “a percentage drop that rises to 15% in the case of Madrid and 17% in Barcelona”.
According to calculations by the Bank of Spain in its latest Annual Report, the housing deficit is chronic and has little prospect of being resolved in the coming years. Between 2022 and 2025 alone there will be a shortfall of 600,000 homes, in an economy with a demographic boom due to immigration and where households are becoming smaller and smaller, so there is greater demand for apartments and houses.
