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Date Published: 29/10/2024

Construction of affordable housing in Murcia grinds to a halt

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So far this year, no additional subsidised housing has been built by the government in Murcia

Construction of affordable housing in Murcia grinds to a halt

A severe shortage of affordable housing in Spain has reached a boiling point, with the construction of subsidised homes in Murcia grinding to a complete halt this year. This alarming trend is not an isolated issue, but rather a symptom of a broader national crisis.

Sadly, the numbers don’t lie. According to the National Institute of Statistics (INE), Spain's population is growing at a rate that far outpaces the construction of new homes. In 2023, only 80,473 new homes were completed, a staggering 200,000 units short of the 280,000 families expected to form each year over the next decade.

And in the Region of Murcia, the VPO (Vivienda de Protección Oficial) model, which aims to provide affordable housing to low-income families, has been pretty stagnant since 2014. A mere 344 VPO homes have been built in the Region during this time, a far cry from the 775 units constructed in 2012 alone.

If the 2024 trend continues for the remainder of the year, it means that Murcia won’t have built or converted one single unit of public housing.

Unfortunately for those in need of subsidised homes, the problem is a complex one and there are many factors contributing to this stagnant market. For starters, construction costs have skyrocketed, making it increasingly difficult for developers to build affordable housing.

The lack of subsidies has also made it less attractive for developers to invest in VPO units. And to make matters worse, the current permitting process is cumbersome and time-consuming, deterring developers from even attempting to build affordable housing.

A new approach

In an effort to prevent an all-out crisis, the regional government has introduced new regulations aimed at streamlining the VPO process and making it more attractive to developers. These regulations include increasing the number of beneficiaries, adapting the surface area of homes and reducing bureaucracy and off-putting red tape.

Promisingly, in a bid to stimulate the construction of affordable housing, the regional government has also announced a new line of aid for the purchase of newly built protected housing. This aid will provide a subsidy of 10,000 euros to young people, families with medium purchasing power and vulnerable groups.

Furthermore, the Ministry of Development and Infrastructure in Spain has pledged to provide 27,486,196 euros in European aid to four municipalities to finance up to 40% of the construction of 555 VPO units. These funds will be distributed between Cartagena (40), Lorca (5), Molina de Segura (52) and the city of Murcia (458).

With these measures, the Ministry expects to greatly relieve the housing stress in the Region of Murcia in the coming months, since “the incentives we are promoting will cause a change in the trend of protected housing.”

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Image: Freepik

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