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House Prices in Spain just keep on rising.

Spanish house prices just keep rising forcing more people to live with their parents and up to 3 generations under a single roof. The younger Spanish couples are suffering.Even though the housing market has boomed in Spain, the majority of new houses are built near the coastal areas as second homes for the English, German, French and other European holiday makers. This high demand of second holiday homes have driven house prices up by nearly 100% over the past 5 years.

The Spanish news reported that over 35% of young Spanish adults between the ages of 20 to 35 still live at home with their parents. The majority of that 35% will keep living at home for the rest of their lives due to the high cost of houses and low income.

The lack of urban land (land on which you can legally build a house) is another major contributor to the high prices of homes in Spain. The process of urbanizing land is long and expensive, so for many years now, the Spanish are forced to buy rural land and build illegally in order to have a home. The proof of this is seen throughout Spain on the out skirts of most villages and cities. This illegal building of houses still happens today.

Another major factor responsible for the high house prices, is owned but unused land. Urban land can be owned by one or several people and be left to rot for as long as they owner owns the land. Some of the wealthy, buy land as an investment, but leave the land as they found it, not renting or using the land, leaving less urban land to build on and forcing house prices up. This is evident all over Spain and is a big problem for the younger adults, as a result, most single adults live at home with their parents.

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