The housing crisis is shaped by a combination of **economic, social, and legislative factors**.  
Economically, stagnant wages and rising rental prices have created a growing affordability gap, while housing is increasingly treated as a speculative asset by investors. Socially, urban migration, demographic changes, and the rise of tourism have increased pressure on housing demand, displacing vulnerable populations. Legislatively, the region suffers from limited public housing policies, weak rent control mechanisms, and a lack of long-term protections for tenants, which hinder the government's ability to ensure fair and stable housing. Together, these factors have deepened housing insecurity and widened social inequalities across cities like Barcelona.

Specifically, the increase in rental housing prices is a complex phenomenon influenced by a combination of factors:

Among the economic factors, we can identify **a demand that exceeds the supply of housing due to the lack of policies** that incentivize and promote the existence of an affordable rental housing stock, as well as the strong interest from investors in investing in the rental property market, which drives prices up. Both factors contribute to rising prices. Additionally, difficulties in obtaining mortgage loans to buy homes can increase the demand for rentals.

Among the social factors, **the high population concentration in cities** also contributes, making prices higher in urban areas. In Spain, the prices in cities like Madrid and Barcelona stand out. Changes in family structure, with the increase in single-person households or nuclear families, also play a role. Furthermore, the rise in tourist rentals (such as through platforms like Airbnb) can reduce the supply of housing available for long-term rental, increasing prices.

Among the legislative factors, regulations that set limitations on the rental price can reduce the incentive for owners to enter the rental market or invest in building maintenance, thus reducing supply. Tax regulations can also affect the rental price, if tax rates are passed on to tenants.

During this challenge we will try to find out what initiatives, proposals and measures could be taken by local governments to solve this problem in urban communities, starting with the **City Council of BARCELONA**as a pilot.

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Universitat Autònoma de Barcelona

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Associate partner

City Council of Barcelona

Associate partner

City Council of Barcelona