MADRID — Thousands of people rallied in central Madrid on Sunday to protest rapidly rising housing costs in Spain. Demonstrators chanted slogans and carried banners asserting their right to housing, with one reading, "We want neighbors, not tourists."

Protesters demanded that the government crack down on tourist rentals that have proliferated in city centers across Spain. Over the last few years, Spaniards have held demonstrations across the country to protest high rental and home costs.

Housing costs rose nearly 13% year-on-year at the end of 2025, according to the EU statistics agency Eurostat. The increases have priced many Spaniards out of the housing market despite a recent economic boom, particularly in Madrid and Barcelona. Market pressures and speculation have driven up prices, especially in big cities and coastal areas, making home purchases unaffordable for many.

Spain, a country of 50 million people, has a strong tradition of home ownership and scant public housing for rent. The Bank of Spain estimates that the country is short of 700,000 homes compared to the pace of new construction.

Tourism has added pressure to the housing market in urban centers. Spain received a record 97 million international visitors last year.

Last month, Spain's government passed a plan worth 7 billion euros to build more public housing over the next four years and provide assistance for young renters and homebuyers. A separate decree that would have extended temporary rent freezes did not pass Parliament.

The housing crisis is one of Socialist Prime Minister Pedro Sánchez's main political vulnerabilities. Elections are scheduled for 2027. The 13% year-on-year increase in housing costs recorded by Eurostat at the end of 2025 reflects a multi-year trend that demonstrators say has outpaced wage growth and left younger Spaniards unable to enter the housing market.