On Wednesday, Spanish Prime Minister Pedro Sanchez announced that the government will fund the construction and renovation of an additional 43,000 affordable

rental homes. This is in addition to the previous plan of converting 50,000 foreclosed homes under management by Spain's bad bank Sareb.

Sanchez stated that the government would use the 4 billion euros ($4.38 billion) it is due to receive from EU rescue funds to lend to developers and owners for building and transforming houses into social housing. The homes will be available for affordable rent or transferred for use for at least 50 years. Sanchez emphasized the importance of energy efficiency for the new housing.

Spain is gearing up for regional polls on May 28 and a parliamentary election later this year, with rising rents expected to be a key campaign issue. According to the Observatory of Emancipation, only 16% of young people in Spain live independently, compared to the European average of 32%. Sanchez hopes that the additional affordable housing will help turn access to housing into a right rather than a problem.