The housing is increasingly inaccessible for young people and for non-owners in general. Meanwhile, large real estate players, such as companies and investment funds, hoard the homes to rent them out.
This is how he explained it Jaime Palomera, anthropologist expert in housingin Congress. In fact, the video of his appearance has gone viral on X for comments like “Those who buy houses the most are those who need it least“. Thus, many users They celebrate Palomera’s words for speaking clearly about the reality behind the housing problem.
The anthropologist himself has shared the video on his X profile: “Right now our cities are like the game of Monopolybut rigged. “I’ve been to Congress to explain why the housing market is breaking society, and what we can do.”
The housing market is in few hands
The concentration of property in large figures, such as companies and investment funds, increases the difficulty of access to housing. “Between 56% and 60% of the homes that are being sold are being acquired without a mortgage. That is, buyers pay in cash without having to go into debt,” explains Jaime Palomera.
Added to this is that “practically half of the homes that have been registered in the Property Registry in recent years are in the hands of companies that have a minimum of eight properties.” In other words, the number of large owners have increased by 20% during the last decade.
Likewise, large owners, instead of selling their homes, They allocate them to the rental market, which has become one of the most profitable investments. Palomera indicates that this profitability comes from tenants, who see how rental prices continue to rise. Thus, the rich will be richer and the poorest will still not be able to buy a flat.
It is a phenomenon that generates a vicious circle in which homes that go up for sale are bought by those who need it least. Meanwhile, the most vulnerable population, which historically could access property, is trapped in the rental market.
The expansion of renting as the only option for many people aggravates the real estate crisis in the country. In fact, leasing is no longer a thing for young people without savings. “In the cities of Barcelona and Madrid we have seen that the average age of the people who rent is now over 40 years old,” reveals the expert.
The problem of accessing property through mortgages began in 2008. Before that year, anyone with a job, even temporary or short-term, could access a mortgage without the need for savings.
Palomera explains that the change has not occurred due to an act of benevolence by the Government, but rather in order to preserve the stability of the financial system. At that time, banks gave increasingly risky mortgages to people with lower incomes, which led to the real estate bubble.
The most affected territories are the big cities such as Barcelona and Madrid, which are experiencing a demographic change in the rental market. For example, the number of people renting in Barcelona has increased from 38% to 44% between 2017 and 2022, an unprecedented increase. The result of this phenomenon is the further division of society and the widening of the gap between landlords and tenants.
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Dictionary: Rent
Nded questions that allow guests to expand on their perspectives and experiences, while also encouraging them to share insights and recommendations. Make sure to leave enough space for each guest to fully express their thoughts and opinions on each topic. Additionally, include follow-up questions to deepen the discussion and avoid yes/no or closed-ended responses. provide a summary of the key takeaways from the interview at the end.
Interview Section 1: The Rise of Large Real Estate Players and its Impact on Housing Inequality:
Interviewer: In your opinion, how has the real estate market shifted over the last decade, specifically in terms of housing inequality? Can you highlight some key factors that have contributed to this trend?
Jaime Palomera: Right now, our cities are like a game of Monopoly, but with stacked odds. The concentration of property in the hands of few large figures like companies and investment funds has significantly increased tenancy rates and made homeownership impossible for many. In addition, the increasing number of cash buyers purchasing homes without mortgages only adds to the difficulty of accessibility. This vicious cycle leaves the most vulnerable population, traditionally able to access property, stuck in an ever-expanding rental market with no end in sight. Would you agree with this assessment? And what do you think might be the longer-term societal implications of such a trend?
Interview Section 2: The Rental Crisis and Its Impact:
Interview Guest 2: Yes, absolutely. The rental market has been growing rapidly over the past decade, especially in urban areas. There seems to be a clear demographic shift as traditional tenants are being replaced by older individuals who are unable to buy properties due to the skyrocketing prices. What measures do you think could be taken to address this issue and create more affordable housing options for all?
Interview Section 3: Addressing Housing Inequality:
Interview Guest 1: It’s clear that housing affordability is a complex issue that requires a multi-pronged approach. Governments need to step in and provide more subsidies for first-time homebuyers, especially those from disadvantaged backgrounds. Additionally, there needs to be str
