Housing in Spain: an imperfect and unfair market
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Abstract
It is a problem that raises concern not only in Spain but in other countries. The unstoppable increase of housing prices for both brand new and second–hand dwellings, and the intensely speculative behaviours in this market have important economic and social effects. The two different components of the demand are mentioned: a) housing to meet a primary necessity which is referred to by the Spanish Constitution; and b) housing as an investment. The preference of Spaniards for housing in property and the little appeal of rent are analysed; in this sense financing and taxation are referred to as influencing elements on the predilection. It is highlighted the importance of land in construction and the role of civil service, especially the local administration. Finally, some proposals for public and private actions are suggested, specifically in subsidized housing.
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