Bankinter : The supply of rental housing is sinking with prices at record levels. In the last year, the stock of rental housing has decreased -5%, while its price has increased by almost +8%. According to data from Idealista, in Q1 2023 the rental housing stock decreased by -5% year-on-year. Last year the decline was -37%.
Analysis:
It highlights the structural lack of supply in the housing market, which could continue to shrink in the coming years, due to the loss of attractiveness of investment in housing. At the moment, there are investment alternatives considered “low risk” that offer similar or even higher returns than the 3.5% gross of rental housing. Moreover, in the opinion of some, the Housing Law does not provide more legal certainty. This lack of supply, together with the growing demand due to greater difficulties in accessing home purchase, means rental prices are expected to continue to be under pressure.
