The Struggle of Spain's 'Generation of Crystal': Unable to Afford Independence

In a stark reflection of Spain's escalating housing crisis, a growing number of young professionals, dubbed the 'Generation of Crystal' (Generación de Cristal), are finding themselves trapped in a cycle of unaffordability, despite being employed. This demographic, characterized by their fragile financial stability, is facing unprecedented challenges in securing decent housing.

The Housing Dilemma

The term 'Generation of Crystal' was coined to describe the delicate and vulnerable financial situation of many young Spaniards. These individuals, often with stable jobs and decent incomes, are still unable to afford the basic necessities of independent living due to the soaring costs of housing. In cities like Madrid, Barcelona, and Valencia, the average price per square meter for new builds has exceeded €3,000, a figure that has risen by 5.5% in 2024 alone and by 52% since the post-property bubble low in 2008[2].

Unaffordable Housing

A recent example highlights the desperation of this situation. In some areas, apartments without windows are being rented out for as much as €1,200 per month. This is not an isolated incident but rather a symptom of a broader issue where the demand for housing far outstrips the available supply. The shortage is exacerbated by the fact that Spain is not building enough new homes, with residential housing starts and completions running at approximately 90,000–110,000 units per year, significantly below the estimated annual household formation rate of 320,000[4].

Government Initiatives and Criticisms

In an effort to address this crisis, Spanish Prime Minister Pedro Sánchez has announced several measures, including the conversion of empty flats into affordable rental units, the construction of 3,300 public flats, and new restrictions on holiday flats and property ownership by non-EU citizens. Additionally, there is a proposal to impose a tax of up to 100% on properties bought by non-EU residents, a move aimed at curbing speculation and making housing more affordable for locals[3][4].

However, these initiatives have been met with skepticism by many experts. Critics argue that these measures do not address the immediate needs of the housing market and may take years to implement, given the political and bureaucratic hurdles. The proposal to tax non-EU buyers, for instance, is seen as ineffective in solving the core issue of insufficient housing supply[2][4].

Impact on Expats and Local Residents

For expats in Spain, particularly those from non-EU countries, the proposed tax increases and the termination of the Golden Visa programme raise significant concerns about the future of real estate investment. While these measures are intended to reduce foreign speculation, they could also deter legitimate investors and further complicate the already strained housing market[4].

For local residents, the situation remains dire. The lack of affordable housing options forces many to live with their parents well into adulthood or to seek out substandard living conditions, such as apartments without windows. This not only affects their quality of life but also hampers their ability to start families and achieve financial stability.

A Call for Comprehensive Solutions

The housing crisis in Spain is a complex issue that requires a multifaceted approach. Experts and former leaders, such as former Spanish President Felipe González, are calling for a comprehensive and bipartisan strategy to tackle the crisis. This includes increasing the public housing stock, streamlining the permitting process for new developments, and addressing the structural imbalances in the housing market[4].

As the 'Generation of Crystal' continues to struggle, it is clear that immediate and effective solutions are needed to ensure that young Spaniards can afford to live independently and build a secure future. The ongoing debate and proposed reforms highlight the urgency of this issue, but it remains to be seen whether these measures will be enough to break the cycle of unaffordability that has become a defining characteristic of Spain's housing market.