MADRID (AP) — Thousands of people rallied in central Madrid on Sunday against spiraling housing costs that have priced many Spaniards out of the housing market despite a recent economic boom, particularly in cities such as the capital and Barcelona.

Spain’s housing crisis is one of Socialist Prime Minister Pedro Sánchez’s main political vulnerabilities before elections in 2027.

The country has a strong tradition of home ownership and scant public housing for rent, while rents have been driven up by increased demand, including due to tourism and population growth linked to immigration, analysts say.

The protesters chanted slogans and held banners highlighting their right to housing. “We want neighbors, not tourists,” one banner read.

Buying a home in Spain has become unaffordable for many, with market pressures and speculation driving up prices, especially in big cities and coastal areas.

Last month, Spain’ s government passed a sweeping plan worth 7 billion euros ($8.23 billion) to build more public housing over the next four years and provide help for young renters and homebuyers, among the hardest hit by high rental and home costs.

A separate decree that would have extended temporary rent freezes did not pass Parliament, exposing the Sánchez government in the short term to more housing-related discontent.

Over the last few years, Spaniards have taken to the streets in numerous demonstrations across the country to protest high rental and home costs. A top demand is that the government crack down further on tourist rentals that have proliferated in city centers across Spain, which received a record 97 million international visitors last year.

Housing costs rose nearly 13% year-on-year at the end of 2025, according to EU statistics agency Eurostat.

The Bank of Spain estimates the Southern European nation of 50 million is short of 700,000 homes, comparing demand to the pace of new construction.

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Associated Press writer Suman Naishadham in Madrid contributed to this report.

Alicia Leon, The Associated Press