Spanish Housing Crisis Sparks Political Turmoil and Early Elections

A protracted legal battle involving Maricarmen Abascal, an elderly tenant in Madrid, has ignited widespread housing protests across Spain and plunged Prime Minister Pedro Sánchez's government into crisis. Abascal, who inherited a rent-controlled apartment from her father in 1956, was paying a mere 500 euros per month for a 100-square-meter property in a prime Madrid neighborhood, a rate significantly below the market value of 3,000-4,000 euros. This "renta antigua" contract, established in the mid-20th century, allowed for automatic renewal and inheritance, with rent tied only to inflation.

In 2018, the building's new owner, the investment fund Urbagestion, raised Abascal's rent to 2,560 euros. Abascal, then 79 and living on disability benefits, fought the eviction in court for five years. While initial rulings favored her, an appellate court and ultimately the Supreme Court ruled against her, citing a 1994 law that limited inheritance rights to two years for subsequent heirs, with exceptions only for those with 65% or higher disability, which Abascal did not meet at 50%.

Abascal's eventual eviction on September 23, 2026, despite being carried out on a stretcher and requiring hospitalization, triggered massive public outcry. Protesters, many of them young people, occupied public squares and blocked access to her building, chanting "Either the rental economy falls, or the government." This galvanized "housing protests" in major cities like Seville, Malaga, and Santiago de Compostela, with media outlets decrying "vulture funds" and "speculative housing markets."

Under immense public pressure, Urbagestion eventually re-negotiated an eight-year lease with Abascal, capping her rent at no more than one-third of her income, approximately 500 euros. Her lawyer hailed this as a victory for social mobilization. However, the underlying housing crisis, characterized by high rents in urban centers and vacant properties in rural areas, coupled with increased immigration, remains unresolved.

Prime Minister Sánchez's government attempted to pass radical measures, including eviction bans until 2030 and a two-year prohibition on investment fund property purchases, but these were rejected by parliament for infringing on private property rights. Facing declining popularity and unable to deliver on "housing socialism," Sánchez called for early elections on November 29. Polls suggest his Socialist party will lose to the center-right People's Party and the right-wing Vox, who promise to restore private property rights and have generally pro-Israel stances, though public opinion in Spain remains largely unfavorable to Israel.