Santiago de Compostela Fights Housing Crisis with Bold Move

Santiago Seeks ‘Tensioned Housing’ Status Amidst Soaring Rental Costs Santiago de Compostela, Spain – In a move to address rapidly escalating rental costs, the city council has formally requested that the Galician regional government declare Santiago a ‘tensioned housing market.’ This designation would trigger price controls, access to state funding, and tax incentives aimed at stabilizing the market. A recent study commissioned by the council and conducted by the University of A Coruña, revealed that the average cost of rent in Santiago constitutes 31.1% of average household income, exceeding the 30% threshold set by regional law. Furthermore, the average rental price per square meter has surged by 44.8% in recent years, significantly surpassing the 23.8% threshold for tensioned market classification. "The study clearly indicates that rental costs are the primary factor driving housing market tension in Santiago," stated Iago Lestegás, the city's Urban Planning councilor, in a press conference. The council's proposal also includes expanding the definition of ‘large owner’ to include those with more than five properties (currently it’s ten) and applying measures to properties that have remained unrented for more than five years. The Galician government now has a six-month period to respond to the city’s request. If the request is denied, Santiago plans to initiate legal proceedings. The initiative reflects a growing concern about housing affordability in Spain and highlights the efforts of local governments to address the issue.