It seems bonkers to me that the so-called social states of the EU are letting this issue destroy young generations so hard. In Spain this problem is particularly hard, as income & savings are on a clear decline since 08, yet no one does anything.
And I mean, they are doing dog shit. Entire generations of spaniards are bleeding poor because they have to allocate >60% of their meager income to housing. All this money gets funneled:
a) To boomers. The ones who where there to buy when it was cheap.
b) To public employees. The only large group of people in Spain with decent enough income to still be buying.
c) To companies. Since 08 more and more companies are pouring their money in the market since boomers are a naturally decaying demand force, and workers from private sector are so deprived of savings and pretty much dissapearing from demand.
More and more Spaniards are giving up their inheritances because they have no income or savings to meet the burdens and taxes.
These assets end up in bank or state auctions, and those who already have capital go to the auctions and get batches of assets.
In general, a gigantic transfer of wealth from private sector workers to the groups described above is taking place in Spain.
The public debate is focusing on stupid things and/or things that we know do not work, such as limiting rents, or the problem of empty houses (empty houses are needed for a functional market, and good luck defining what an empty house is).
Meanwhile, housing demand clearly outstrips supply. And it's not just about Madrid or Barcelona, it's happening in medium sized cities too, so even if you want to escape you can't! The city councils control what land can be built on, and who gets licenses. Public housing developments are a bad joke, and private initiative is clearly not doing its job.
It is a situation that is going to explode, and despite the fact that some of us spend time warning in every possible way, it seems that nobody pays attention.
And to this must be added the fact that many Europeans with remote jobs are moving to Spain because for their level of income and savings the prices in Spain make sense, putting pressure on sale and rental prices.
This is an incipient phenomenon, but the climate, a high level of services and quality of life invite to think that it can become a serious problem (there are already cities banning vacation rentals, outright).
