Navarra’s Housing Crisis: A New Approach

Housing prices in Spain have reached alarming levels, with Navarra estimating a residential deficit of around 700,000 homes. While many advocate for new construction as a solution, the Foral Community of Navarra is exploring alternatives that are “solidarity-oriented, sustainable, and protective against speculation,” as noted by Begoña Alfaro, the region’s third vice president and counselor of Housing, Youth, and Migration Policies.

Towards Collaborative Housing

The government of Navarra has presented a draft of the Regional Law on Collaborative Housing. This initiative aims to create residential complexes managed by cooperatives, allowing members to have individual long-term rights to both their homes and shared spaces. This model represents a middle ground between traditional ownership and rental arrangements.

Types of Collaborative Housing

The preliminary project outlines three key categories of collaborative housing:

  • Affordable, non-profit residential units requiring registration.
  • Specialized housing for seniors aged 50 to 70, complete with healthcare facilities.
  • Rehabilitation of unique architectural heritage buildings such as convents, old mills, farmhouses, and barracks.

The Importance of the Initiative

The primary aim is to provide a stable, supportive, and non-speculative residential model that stands in contrast to full ownership and traditional rental options—systems that have often led to housing speculation. As economist Ignacio Ezquiaga pointed out, Navarra’s public housing policy is emerging as a “model to follow” for other regions. This law specifically targets those in greatest need, including low-income individuals and the elderly, while also repurposing historical buildings.

Current Housing Market Context

As of 2025, Navarra designated 21 municipalities as “stressed residential market areas,” where rental prices have begun to decline. Interestingly, it stands out as the only autonomous community where housing prices saw a 3.9% decrease last April. Despite fluctuations, it has been a leader in constructing protected housing, building twice as many units per capita compared to the Community of Madrid. Over 20% of completed homes in 2025 included some classification of protection.

Growing Support for Public Housing Policies

Experts attribute Navarra’s relative success in addressing housing issues to its ongoing commitment to public housing initiatives. The Regional Law on Collaborative Housing has emerged from extensive public participation processes, contributing to a robust legal housing framework, including a Registry of Large Homeowners and regulations governing room rentals.

Collaborative Housing in Architectural Heritage

This innovative housing strategy will also involve rehabilitating unique buildings that are not easily divisible into separate living units. The collaborative housing approach guarantees that individual units will have at least 30 square meters of usable space, equipped with essential facilities while fostering communal living spaces.

Challenges Ahead

Although the draft bill presents a promising vision, the path to implementation is complex, requiring approval from various councils and legislative bodies. Additionally, collaborative housing remains a niche solution. Its immediate impact on the housing crisis may be limited compared to more traditional interventions like rent controls in high-demand areas.



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