Spain's economy has shown significant improvement since the coronavirus pandemic, with the country accounting for one-third of job creation in the European Union. Disposable income has increased rapidly compared to France and Germany, while unemployment and poverty levels have reached their lowest in nearly two decades. The Economist ranked Spain as the top economy in the world in 2024. This economic turnaround has been attributed to progressive policies, including increased immigration and social welfare programs, which have helped to neutralize the political far right.
However, Spain is now facing a housing crisis, with home prices rising significantly due to increased demand from a surge in immigration and a rebound in tourism. The construction of new homes has not kept pace with demand, leading to a more than 50% increase in average home prices from December 2020 to December 2025. Public opinion polls indicate that housing has become a top concern for Spanish voters, with many expressing dissatisfaction with the government's ability to address the issue.
As the far-right party Vox has shifted its focus to housing, linking the crisis to immigration, it has gained support in recent elections. Despite this, Vox still holds a smaller percentage of seats in Parliament compared to far-right parties in other European countries. The upcoming 2027 elections may further test the government's ability to manage the housing crisis and maintain public support.