Spain's housing crisis proves markets take everything

By Maya Ellison · Reporting from Detroit · October 3, 2026

Tens of thousands march in Spain after politicians reject housing decrees, showing how the establishment protects vulture funds while working-class tenants suffer.

When the vulture funds come for an 87-year-old grandmother

I remember the 2008 crash. I was twelve years old. I watched the houses on our block in Flint empty out one by one. The banks took what my neighbors spent their lives building. You don't forget the sound of a front door slamming shut. You don't forget the quiet panic around the kitchen table when the mortgage turns into a foreclosure notice. We were told the market had to correct itself. It was as if working people were just numbers on a spreadsheet, wiped out when gamblers lost their bet. That same cold cruelty is playing out across Spain right now. The housing market has become a machine that eats the working class alive.

An 87-year-old disabled woman named Maricarmen Abascal was forcibly evicted from her Madrid apartment. Her landlord, a private investment fund named Urbagestión, had hiked her rent by 230% to 275%. Think about that number. An old woman who had built her entire life in one home was thrown out onto a stretcher. She was taken to the hospital because some faceless corporate ledger demanded a bigger return. Hundreds of people gathered to try to stop it. They faced a violent police response that included tear gas. Only after massive social backlash did Urbagestión back down and let her return under a new tenancy.

That brutality did not happen in a vacuum. According to the national statistics institute INE, house prices rose 12.2% in the past year. Real estate firm Idealista reported that rental costs rose, and rents in Madrid increased.

Idealista listed Barcelona and Madrid as the most expensive cities to rent. Marcos Sainz, a librarian, previously paid for a shared flat. Now, a flat often costs 1,000 euros. That is half the median monthly salary in the city.

Javier, a solar panel installer, stated that he spends half of his salary on a tiny room.

The Bank of Spain estimates that Spain is short of 700,000 homes. Meanwhile, asking prices for homes have risen by about 90%, according to Idealista. Average rents have almost doubled over the last decade, according to Idealista. The people who built these cities are being priced out of existence. They teach the kids, stock the shelves, and fix the solar panels. When they look to the political establishment for relief, the doors get slammed in their faces.

The politicians who sold out the streets to protect the speculators

Prime Minister Pedro Sánchez's leftist coalition government tried to pass emergency housing legislation. His coalition consists of his Socialist party and the Sumar alliance. They acted after Maricarmen Abascal's eviction forced their hand. But Sánchez's coalition does not hold a parliamentary majority. The decrees were doomed by a political class loyal to property portfolios over human lives.

The first proposed decree suspended evictions of vulnerable tenants. It extended rental leases, increased taxes on tourist apartments, and restricted investment funds—termed 'vulture funds'—from buying residential properties. The second proposed decree included the automatic renewal of rental contracts. Did the opposition care about the housing shortage or the elderly being hauled away on stretchers? Of course not. MPs rejected both decrees.

The conservative People's Party and the far-right Vox voted against both initiatives. They joined hands with Together for Catalonia, or JxCat, which opposed both laws. This is the oldest trick in the book. When the chips are down, the right and nationalist factions unite to protect the wealthy. Alberto Nunez Feijoo, leader of the Popular Party, demanded that Sánchez call a snap election. He claimed Sánchez had the backing of 'neither the streets nor parliament.' Feijoo is right about the streets. But the streets are furious at the very political stagnation his party works to maintain.

Defenders of this status quo argue that rent controls and eviction bans interfere with property rights. They claim these measures distort the market and discourage new construction. But this argument treats a basic human need as a commodity. It pretends that an 87-year-old woman paying a 275% markup is just a normal transaction. The market-oriented housing model pushed by places like Madrid has failed. Rights mean nothing if they are not enforced. Spain's Constitution recognizes the right to decent and adequate housing. Yet that is just ink on paper while vulture funds buy up neighborhoods.

What the Indignados movement teaches us about who holds the real power

The response from the working class has been swift and righteous. About 50 marches were planned in cities like Madrid, Valencia, and Barcelona. Tens of thousands of people took to the streets. In Madrid, the Tenants' Union estimated 500,000 participants. Government officials estimated a much lower number. Protesters have been camping in Madrid's Puerta del Sol square for days. They echo the historic mobilization of the 15-M Movement.

This is the Indignados movement all over again. It is a series of protests, demonstrations, and occupations against austerity policies in Spain. Those protests began around the elections of 2011. Today's tenants know that waiting for parliament to save them is a fool's errand. "There is a lot of anger in the streets," said a spokesperson for the Valencia Tenants' Union. The BBC reported this statement. Valeria Racu, a spokesperson for the Tenants' Union, spoke to DW.com. She said: "What we are feeling in the streets is a new energy that we haven’t seen in a long time." "It is an energy showing that eight days of people’s power can achieve more than eight years of progressive government."

In Valencia, clashes occurred near the Palau de les Arts Reina Sofía, which hosted a real estate summit. Protesters removed barriers and threw objects at officers. Police responded with rubber bullets and tear gas. Public broadcaster RTVE reported that nine police officers were injured. Five people were arrested in Valencia. Protesters also briefly entered the City of Arts and Sciences before being ousted. DW.com and RTÉ reported these brutal scenes of police firing on citizens demanding a place to live.

Madrid's Tenants' Union stated that the rejection of the proposed legislation 'exacerbates the housing crisis.' They said it is 'costing the working class their lives.' They are now calling for a general strike. Marcos Sainz told The Punch he will protest rental spikes. He said he will protest 'until someone dares to regulate it all as otherwise we'll all have to leave Madrid.' David told RTVE, 'We're not here for pleasure or comfort. We're here out of conviction.' Javier told The Punch: 'we are demanding a fundamental right.' He demanded 'decent housing, stability and conditions allowing us to construct a decent life project.' They are standing up because they know that if they do not fight, they will be erased.

Housing is a human right, not a financial asset for speculators to milk dry. The Spanish parliament chose to protect corporate landlords and vulture funds. But tens of thousands of people in the streets of Madrid and Valencia have made something clear. Working-class solidarity is the only power left that matters.

Spain's housing crisis proves markets take everything

When the vulture funds come for an 87-year-old grandmother

The politicians who sold out the streets to protect the speculators

What the Indignados movement teaches us about who holds the real power

Sources