Beyond Market Supply: The Complex Reality of Housing Shortages

• Simply increasing housing supply is ineffective at lowering prices without addressing the nature and purpose of that housing.
• Housing markets are segmented by geography and product type; abstract calls for more construction fail to account for how investors or short-term rental platforms consume new stock.
• True housing stability requires prioritizing social or cooperative housing over profit-driven private development.

The Fallacy of Increased Supply

• In Dublin, new housing completions rose by 20.4% in 2025, yet purchase prices increased by 6% and rents by 9%.
• Historical data from Spain (1998–2008) shows that constructing 5 million units did not prevent prices from doubling.
• Expanding supply without regulation simply provides more assets for investors rather than homes for residents.

Flaws in Current Housing Policy

• Markets must be analyzed by specific segments; a luxury investment unit does not compete with affordable residential housing.
• Relying exclusively on private promoters ensures that new builds are directed toward the most profitable market, which is rarely long-term residential leasing.
• The 750,000 units the Bank of Spain says are needed will not solve the crisis if they are designated for tourist rentals or luxury investment.

Public Role and Social Mobilization

• Politicians like Alberto Núñez Feijóo advocate for deregulation and private-public partnerships as the sole solution.
• A robust policy requires public or cooperative ownership that competes with private developers, ensuring housing serves a social function rather than being a tool for capital accumulation.
• Grassroots protests in Spain, France, Italy, and Greece highlight the growing social demand for affordable housing, proving that collective mobilization remains essential to forcing policy changes.