"It’s the economy, stupid." This phrase became famous during Bill Clinton’s successful 1992 presidential campaign against then-President George H. W. Bush. Since then, it has been widely used to highlight what is both obvious and essential. It also aptly sums up the current state of the rental market in Spain, where a serious issue has emerged: a sharp and sustained decline in the supply of rental housing over the past five years. This downward trend shows no signs of slowing and risks becoming a long-term structural problem, potentially leaving very few properties available on the market.
Today, securing a long-term rental home in Spain has become nearly impossible for thousands of people currently searching. The situation has deteriorated markedly over the past five years, with a significant drop in the number of homes listed on idealista, even as demand has surged during the same period. As a result, rental prices have soared to record highs across Spain and in its major cities, according to the latest figures from idealista/data, idealista's proptech division.
According to idealista/data, the Spanish rental housing stock has declined by 56% compared to its peak, which was recorded on the real estate portal at the end of 2020. The most recent figures, published by idealista/data, cover Q4 2024.
Meanwhile, in Spain’s major cities and key rental markets, the availability of long-term rental homes has become critically strained. Between March 2020 and January 2025, the number of properties available to rent fell by 58.1% in Barcelona, 47.4% in Seville and 46.7% in Madrid. Valencia has also seen a notable decrease, though slightly less severe, with a 31.4% drop in rental stock over the same period.
However, the collapse in available rental stock becomes even more dramatic when compared to each city’s peak. Barcelona stands out in particular, having lost a staggering 78% of its listed rental supply since its highest point in September 2020. Seville follows closely, with a 77% drop from its peak in November 2020.
In Madrid, the supply has fallen by 70% compared to listings recorded in November 2020. Valencia has also experienced a sharp decline, with rental stock down by 62% since its peak in December of the same year.
Much of the exodus of rental supply can be attributed to government intervention in the rental market. Over the past five years, measures such as the suspension of evictions for non-paying tenants and the introduction of rent caps have been imposed. These policies culminated in the implementation of the Housing Law, which established designated areas as "stressed residential markets."
Many properties that were once available for long-term rental have been redirected either to the sales market or to alternative rental formats, such as short-term or holiday lets. In 2024, nearly 715,500 homes were sold across Spain, well above the figures recorded in 2008. This represents the sixth-highest annual total ever registered by the Ministry of Housing and Urban Agenda (MIVAU), surpassed only during the real estate boom years (2004–2007) and in 2022.
Madrid led the way in 2024 as the municipality with the highest number of home sales in Spain, with nearly 45,850 transactions, significantly ahead of Barcelona (17,615), Valencia (11,050), and Seville (9,440).
When it comes to rental demand, the data clearly shows a sharp increase in interest, even as the number of available properties continues to fall. The number of users requesting contact through the real estate platform has surged, reflecting growing pressure on the market. In Barcelona, relative demand has soared by 444% compared to March 2020, followed by a 388% increase in Seville and a 300% increase in Valencia. Even in Madrid, where the highest number of rental listings in Spain is concentrated, demand has jumped by 290%.
All of this has led to a nationwide surge in rental prices, which continue to rise, reaching all-time highs both across Spain and in its main urban markets. For the first time, the average monthly rent has hit €14 per square metre in 2025. According to the latest idealista price index, corresponding to March, this marks the highest level recorded since the index began in 2006. Compared to March of the previous year, rents have risen by 10.3%. When measured against March 2020, when the average stood at €10.60/m², the increase is a striking 32%.
Among the major markets analysed, the steepest year-on-year rental increases were recorded in Valencia and Barcelona, both rising by 13.2%. Madrid also exceeded the national average with a 12.2% increase, while Seville saw a more moderate rise of 7.9%.
When compared to March 2020, the growth in rental prices has been even more pronounced. Valencia leads with an extraordinary 66.3% increase, followed by Barcelona at 42.4% and Madrid at 35%. In Seville, prices have risen by 19.4% over the past five years.
Barcelona remains the most expensive Spanish city to rent a home, with an average price of €23.50/m², followed by Madrid at €21.20/m². Valencia (€15.30/m²) and Seville (€12.30/m²) trail behind, though all four cities have reached record rental prices in 2025.
Spain’s rental market 5 years after the pandemic
It has been five years since the onset of the coronavirus pandemic, and the real estate market has undergone significant changes, particularly in the rental sector. During the period of isolation, the supply of long-term rental properties doubled, peaking in December 2020 as prices fell. However, since then, rental supply has declined by 56%, while prices have risen by 30%. Political measures implemented in response have only reduced stock to minimal levels, placing further strain on the market
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