Spanish parliament rejects government housing measures as affordability crisis deepens

Spain's parliament voted down two government bills aimed at addressing a severe housing affordability crisis, dealing a significant setback to Prime Minister Pedro Sanchez ahead of 2027 elections. The rejection sparked outrage among protesters who have mobilized across the country, including setting up a tent city in Madrid, following the eviction of an elderly woman that symbolized wider frustrations. With rents doubling over the past decade and now consuming nearly all of average young workers' salaries, demonstrators are calling for a general strike to pressure lawmakers for action.

Spain's housing market has experienced dramatic price escalation over the past ten years, with monthly rental costs now consuming nearly all earnings for young workers. The catalyst for recent mass mobilization was the eviction of an elderly Madrid resident, whose case galvanized public anger and prompted the establishment of protest encampments in the capital. The rejected legislation would have implemented automatic lease renewals and strengthened protections for at-risk tenants while addressing investment firms that acquire properties for financial speculation.

The parliamentary defeat reflects fractured coalition politics, as Prime Minister Sanchez's government lacks sufficient votes to pass measures independently. The Catalan separatist party, whose support is crucial for legislative passage, withdrew backing on Thursday and demanded the bills be substantially revised. Combined opposition from conservative and far-right lawmakers ensured the measures failed, with voting margins of approximately six votes on the first bill.