Spain's rent crisis pushes 71% of citizens to favor mortgages
A surge in Spanish rental costs has driven a record 71% of citizens to view mortgages as financially superior, highlighting a widening imbalance that leaves the country out of step with Europe's shift toward renting and fuels fears of a new property bubble.
Seven in ten Spaniards now believe paying a mortgage is more cost-effective than renting. This shift comes as record-high lease prices reshape the country's housing psychology and fuel fears of a new property bubble.
The finding comes from a February 2026 Fotocasa Research report. It found that 71% of private individuals view buying as the better financial move, up slightly from 70% a year earlier. The consensus scored 7.6 out of 10, the strongest of the entire study.
"Although getting onto the housing ladder remains difficult because of a lack of savings and high purchase prices, more and more people feel that, if they can afford to take the plunge, paying a mortgage is a more profitable option than putting a monthly payment into rent that keeps increasing. This perception reflects the huge imbalance currently affecting the rental market," said María Matos, Head of Research and spokesperson for Fotocasa. This confirms that buying is now a financial survival strategy rather than just a cultural preference.
For the broader European economy, the data underscores how Spain remains anchored to an ownership model that much of the continent has moved away from. Only 40% of respondents believe Spain will converge toward the European rental model, down from 41% in 2025. Half of those surveyed still view renting as "throwing money away".
Bubble fears and policy failure
This rush to buy carries clear risks for the financial system. The Fotocasa study found that 56% of citizens fear the market is heading toward a new property bubble, up from 54% in 2025. Yet, 68% of respondents still consider real estate a safe investment, scoring it 7.2 out of 10.
The political response has done little to calm the market. Spain's Housing Law remains deeply unpopular, holding a dismal average rating of just 4.7 out of 10. Only 28% of citizens approve of the regulation, a marginal one-point increase from the previous year.
A new macroeconomic test
The survey captures a specific macroeconomic window. The responses reflect the 2023 to 2025 period, when easing interest rates made mortgages cheaper even as rents surged.
However, the ECB raised interest rates again in June 2026. This recent tightening of credit conditions introduces a significant variable for the housing market. If mortgage costs climb, the financial calculus driving Spaniards toward buying could quickly reverse.
