Left-wing policies drive up rental prices in Barcelona

Experts warned that market regulation would produce an effect contrary to the desired one. Rulers in Catalonia preferred to give in to pressure from the housing movement and surrender to interventionism. One year after the rent price cap, supply has plummeted and prices have skyrocketed.

New data from the Rental Observatory show that left-wing policies haven't worked. Barcelona province leads the drop in supply with 6,924 fewer homes on the market. This has caused unprecedented tension, with a ratio of 437 applicants per home.

The report points out that Catalonia was "pioneering" in declaring stressed areas in 140 municipalities. Although its goal was to cap prices, Barcelona is now established as the province with the most expensive rents: €1,656 per month on average, 3.6% higher than before the cap was approved.

Supply falls and prices skyrocket

One of the consequences of regulation has been the withdrawal of homes for rent by investment funds. Barcelona leads this drop, which is expected to be 2% in 2025 compared to the previous year. The drop in supply means there are more applicants for a single home, which drives up the rental price.

The turning point was 2021, when according to the observatory, supply was at 192,850 properties and the average price was €1,138. Four years later, supply has dropped to 88,292 properties, and the price has soared above €1,600.

Left-wing policies already proved to be a failure when Comuns governed Barcelona. Ada Colau became mayor in 2015 coming from the housing movement. Eight years later, not only did she fail to solve the problem, but the Catalan capital led the increase in housing prices throughout the country.

This trend has continued and even worsened after the new regulatory push by ERC and PSC governments. These policies create legal uncertainty that encourages the withdrawal of supply and the growth of the black market. 

In addition to driving away supply, public authorities in Catalonia have boasted about building public housing. But after years in power, there has been a clear deficit in this area. According to the latest studies, Catalonia will need 313,000 public homes in the next 15 years.