Spanish Protesters Target ‘Vulture Funds’ Amid Deepening Housing Crisis

Hundreds of demonstrators have established a encampment in Madrid’s Puerta del Sol to protest the nation’s worsening housing emergency, directing their frustration at investment firms commonly referred to as “vulture funds.” Among the protesters is Pierina Nicuray, a 21-year-old university graduate who has been sleeping outdoors for a week. She argues that the core issue remains a critical shortage of available homes, compounded by landlords exploiting the scarcity to hike rents and the proliferation of short-term tourist rentals like Airbnb.

Jorge Moreno, a 19-year-old film-dubbing student, echoed these sentiments. Living with his mother, Moreno fears he will be unable to afford independent housing for the foreseeable future. He contends that investment groups have long treated residential property as a speculative asset, artificially inflating rents until tenants are forced out. Their views reflect a broader consensus among Spaniards and even within the government regarding the perceived greed driving the market.

Prime Minister Pedro Sánchez recently attempted to introduce emergency legislative measures targeting speculative practices, stating he was acting against those who view housing merely as a commodity. However, after the Congress rejected his proposed reforms, Sánchez announced a snap election for next month. The political turmoil coincides with renewed public outrage following the death of 87-year-old Maricarmen Abascal. Abascal became a symbol of the crisis after an investment firm bought her home, pressured her to leave, and drastically raised the rent, leading to her eviction and subsequent death in a hospital.

The human cost of the crisis extends beyond high-profile cases. Carmen Pérez, a retired widow from Ecuador who has lived in Spain for 17 years, found housing affordable when she first arrived. Facing exponential rent increases, she has been forced to move in with her daughter and son-in-law. Pérez reports that the instability and financial stress have severely impacted her mental health, leaving her with depression and a lack of security.

Data underscores the severity of the financial burden. According to property platform Idealista, average rental prices in Spain have surged by 84% over the past decade. In Málaga’s city center, the increase reaches 113%, while Marbella has seen hikes nearing 150%. A recent study by the Centre for Sociological Research (CIS) indicates that 72% of Spaniards support higher taxes on owners of ten or more properties, 76% favor limits on short-term tourist accommodations, and 40% back the expropriation of empty homes.

Despite the public focus on investment funds, economic experts argue the narrative may be oversimplified. Jorge Galindo, director at the Esade centre for economic policy, noted that Bank of Spain figures from 2024 show only 8% of rental properties are owned by companies. He asserts that data does not support the idea of a notable accumulation of rentals by a small group of owners, describing the rise in costs as driven primarily by a mismatch between supply and demand rather than corporate speculation.

The Bank of Spain estimates a national housing shortfall of approximately 750,000 homes, a figure that deputy governor Soledad Núñez warned could swell to one million by 2028. While the National Statistics Institute (INE) reports 3.8 million empty properties in Spain, many are located in depopulated rural areas or are tied up in legal disputes or renovations, rendering them unavailable for the urban markets where demand is highest.

Demographic shifts have further strained the market. Between 2021 and 2025, Spain saw the creation of roughly 1.2 million new households, largely driven by migration. However, new construction lagged significantly, with fewer than 500,000 homes built during the same period. This shortfall is attributed to a weakened construction industry following the Eurozone crisis, rising material costs post-pandemic, and political hurdles. Galindo suggested that short-term rentals likely have a localized rather than nationwide impact on pricing.

Stagnant wages have exacerbated the affordability crunch. A study by El País found that the average Spaniard’s real spending power has decreased by 5% over the last decade due to inflation and taxes. In the Madrid region, the average salary stands at €1,550. Francisco Pardo, an 81-year-old retired taxi driver visiting the protest, questioned the sustainability of a system where workers might need to spend up to 80% of their income on rent.

As the debate continues, the tragedy of Maricarmen Abascal has forced the housing emergency onto the national agenda. The key challenge now lies in whether policymakers can reach a consensus on effective solutions to address both the immediate humanitarian concerns and the underlying structural deficits in Spain’s housing market.