Where are we going to live? Seasonal rentals are taking over the market and apartments for sale are disappearing.

Real estate agency windows in Barcelona and other cities are increasingly displaying “sold” and “rented” signs on their housing listings. Simply by walking around, the shortage of apartments on the market is evident, a reality confirmed daily by sector data. Currently, the supply of homes for sale has fallen to historic lows, while permanent rentals are rising modestly by 3% compared to the 26% surge in seasonal rentals. Faced with the lack of homes to buy and the boom in short-term leases, the question of where we will live becomes increasingly urgent.

During the second quarter of the year, the key elements of Spain’s housing crisis became consolidated. According to Idealista, the number of homes for sale dropped 20% year-on-year, an unprecedented decline. No provincial capital recorded an increase in supply, and in some, such as Segovia or Ciudad Real, the decrease approached 50%.

Demand for home purchases far exceeds the available supply, driving a steady rise in prices. In addition, the low-interest-rate environment is making mortgages more attractive, encouraging both those who had previously abandoned the market and new buyers seeking favorable financing. However, high prices prevent many from accessing housing, even if they could handle a mortgage, because they cannot save enough for the down payment and associated costs such as notary fees and interest.

The imbalance also affects the rental market. Idealista reports that in Q2 2025, seasonal rental contracts already accounted for 15% of the market, after increasing 26% in one year. In the same period, conventional rental supply grew by only 3%.

In Barcelona, 49% of listed apartments were for temporary rental, a 31% increase from the previous year. In San Sebastián, this type of rental represents 39% after 19% growth. These are the two Spanish cities where seasonal rentals carry the most weight. By contrast, in less pressured areas they are barely present, representing just 1% in capitals such as Ciudad Real, Palencia, Guadalajara, Zamora, or Lugo, and being non-existent in Ceuta and Melilla.

However, their current small share does not guarantee they will remain absent in the future. Some cities where this type of lease was almost unknown have seen spectacular increases, such as Ourense (+600%), Lugo (+150%), Jaén (+140%), and Cáceres (+113%). Meanwhile, in Huesca, Palencia, and Guadalajara, supply has dropped significantly.

Barriers to buying and rental difficulties

The real estate sector agrees on the problem. María Matos, head of Research at Fotocasa, stressed that the gap between supply and demand has been significant for four years, driving prices up by 15%. She also pointed out that rental demand has increased, but supply continues to decline, pushing rental prices to historic highs in many regions during 2025. This situation perpetuates the difficulty of accessing housing, whether to buy or to rent.

Given the challenge of finding housing, most people prefer to buy despite today’s high prices rather than face steep rents. A Fotocasa study reveals that three out of four people in Catalonia, Andalusia, or the Balearic Islands would rather take out a mortgage than pay high rents—a preference that rises to 80% in Valencia and two out of three in the Canary Islands.

“Homeownership is regaining strength as a symbol of stability, investment, and family legacy. Analyzing the current context, buying a home can often be cheaper than renting,” Matos explained.

Although the number of home sales nearly equals that of 2007—the peak before the housing bubble—the scenario is different: supply cannot keep up with demand. This creates a paradox where, despite the rebound in transactions, the proportion of homeowners remains stagnant. Many potential buyers lack the savings to cover the 20% down payment and upfront costs, pushing them into a rental market where prices continue to soar, further limiting housing options in Barcelona and other large cities.