Barcelona Mayor: Housing Crisis is as Grave a Threat to the EU as Russia

Barcelona Takes Action to Address Housing Crisis

During the pandemic, many believed people would abandon cities for good, yet the opposite has occurred, according to Collboni. He emphasized the need for government intervention, as the housing market has struggled to manage the crisis on its own.

Collboni described the city’s newly introduced rent cap as a short-term measure aimed at preventing the situation from worsening. However, he stressed that a lasting solution to Europe’s housing problems requires a significant increase in affordable public housing. Before initiating large construction projects, he urged policymakers at all levels to rethink their approach to public housing, noting that demand is no longer limited to society’s most vulnerable populations.

“We need housing policies that are far more inclusive, recognizing that this issue now affects the working and middle-class families in urban areas,” he stated. He pointed out that 75 percent of Barcelona’s population could qualify for housing assistance.

Building More Homes Isn’t the Only Answer

Collboni acknowledged that constructing new housing is not always a feasible option, particularly in a geographically constrained city like Barcelona.

“Barcelona is surrounded by the sea, mountains, and neighboring municipalities,” he explained. “We are developing three new districts where up to 45,000 homes will be built—half of which will be public housing—but beyond that, there is little space left to develop.”

With limited room for expansion, city officials are focused on expanding public housing stock through alternative means. One strategy involves exercising the city’s legal right of first refusal, granting authorities priority in purchasing buildings located in highly stressed property markets. Over the past decade, Barcelona has worked with Catalonia’s regional government to acquire over 7,000 apartments, which now provide affordable rentals.

A recent example is Casa Orsola, a well-known building in the Eixample district. Originally bought by an investment firm intending to evict long-term residents and convert their homes into tourist rentals, the acquisition sparked widespread protests. In response, local authorities partnered with a social housing organization to purchase the property for 30 percent below market price.

“We are rewriting the rules that have led us to this crisis,” Collboni stated. “Investment firms should recognize that these types of operations will no longer be profitable in Barcelona. There are plenty of other sectors for investment—let them pursue those instead.”