Why the Housing Law is making it harder to rent, according to Fedea

The Housing Law was created with the intention of capping rental prices and facilitating access to affordable housing. However, a recent study by Fedea concludes that while the regulation is successfully moderating rents in the areas where it is applied, it is also triggering side effects that complicate market entry for many tenants.

The report, prepared by researchers from the Rey Juan Carlos University and published by the Foundation for Applied Economic Studies (Fedea), analyzes the initial results of the legislation approved in May 2023. Its main objective is to answer two questions: whether the law is slowing down the rise in rents and what impact it is having on the available supply of housing.

Lower price increases, but also less supply

The analyzed data shows that regulated areas have experienced a more contained evolution of rents. Between the first quarter of 2024 and the fourth quarter of 2025, prices increased by 5.7% in Barcelona and Catalonia, compared to the 8.5% recorded in Madrid and the national average of 10.8% in Spain.

According to Fedea, this trend is consistent across the four Catalan provinces, where increases ranged between 3.1% and 5.7%, lower than in most comparable territories.

However, the study highlights another phenomenon that it considers particularly relevant: the sharp reduction in the supply of rental housing.

While the number of rental listings fell by 22.2% in Barcelona and 20.5% in Catalonia, Madrid saw an increase of 3.9%. Furthermore, the decline observed in Catalonia is significantly higher than in other communities such as Andalusia or the Valencian Community, where the drop is around 10%.

Increased competition to secure a home

The reduction in supply has had a direct consequence: competition among potential tenants has skyrocketed.

Fedea points out that Barcelona records approximately 4.5 times more applicants per home than Madrid. This means that finding an apartment is becoming increasingly difficult, even when prices are growing at a slower pace.

From an economic perspective, when prices cannot adjust freely, the market tends to balance itself through other means. In this case, landlords select candidates using criteria such as job stability, financial solvency, or even personal preferences, which further complicates access for certain applicant profiles.

Winners and losers

One of the most striking conclusions of the report is that the regulation seems to primarily benefit those who already live in a rented home within the affected areas, as their rents increase less than they would in an unrestricted market.

In contrast, those looking for a home for the first time or needing to move face a more complex scenario: fewer available options, more competition, and more demanding selection processes.

Therefore, Fedea considers that the law may not be fully meeting one of its fundamental objectives: improving access to housing for those who face the greatest difficulties in finding it.

The underlying problem remains the housing shortage

The study also rejects the idea that the Housing Law is responsible for the generalized rise in prices throughout Spain. According to the authors, most of the country is not subject to rent control measures, so the behavior of the overall market cannot be attributed to the regulation.

For Fedea, the real problem continues to be the imbalance between supply and demand. The housing deficit accumulated in Spain currently hovers around 700,000 units, according to estimates from the Bank of Spain, and could approach 800,000 by 2027 according to BBVA forecasts.

In other words, beyond the debate over rental regulation, the lack of available housing remains the main challenge for both the rental and sales markets.