10,000 homes would be needed to reverse the situation
MADRID, 21 Oct. (EUROPA PRESS) –
Eradicating homelessness would require an investment of 1.2 billion euros, according to a study carried out by the consulting firm EY, which has analyzed the phenomenon in Spain from multiple perspectives.
Likewise, the report reflects that homelessness “is a complex, recurring social problem with multiple causes that go beyond the mere lack of housing.” Likewise, he states that in Spain there are currently 28,500 people in this situation and that the promotion of social housing from various public initiatives “not only has failed to alleviate the situation, but it is becoming worse.”
Furthermore, the study indicates that, as the European Commission points out, homelessness usually includes situations of vulnerability, insecurity or low quality of housing. “The most frequent causes that cause people to suffer from these types of situations are usually related to factors such as poverty, unemployment, migration, age, health problems, broken relationships or lack of adequate support for people who stop living in public facilities. “, Add.
Likewise, remember that the 2022 homeless people survey by the INE reveals that a total of 28,552 homeless people are cared for in care centers, which is 24.5% more than in 2012. In this sense, it states that the majority of homeless people are men (76.7%). However, it states that the number of women has increased, reaching 23.3%, a figure higher than the 19.7% in 2012. In addition, it highlights that 29.9% declare that they do not have any source of income.
On the other hand, it shows that, despite the fact that the population in Spain has been stagnant for several years at around 47.6 million inhabitants, with an inverted population pyramid and a clear aging trend, the number of households continues its upward trend. rises to 18.9 million in 2022 (1% higher than 2020).
Likewise, it reflects that households continue to decrease their average size in number of inhabitants per household (2.48 people per household in 2022) and this trend is expected to continue, according to INE estimates, with an estimate of 2.36 inhabitants per household in 2037. “This trend, together with the expectation of population growth due to the effects of migration, puts upward pressure on the demand for housing in Spain,” he says.
The EY report estimates a necessary investment of 1.2 billion euros to reverse this situation. Along these same lines, he points out that 10,000 homes would be needed when considering that in Spain there are currently 28,500 people experiencing homelessness.
“With an average occupancy of close to three people per home, we would need about 10,000 homes. With an average home price of about 100,000 euros (taking into account the average home price in Spain of about 60 m2 of surface), to which we would have to add about 20,000 euros to adapt the home, we arrive at an average cost of 120,000 euros per home,” the report adds.
At this point, he specifies that, according to the INE, in Spain there are about 3.4 million empty homes “so the necessary stock exists, in the absence of rehabilitation and making this system available.”
Finally, EY calls for the development of “active, realistic and urgent policies to expand the social housing stock and the availability of housing at affordable prices, especially for vulnerable or low-income groups.”
Furthermore, as part of its proposals, it also suggests the convenience of modifying the legislative and fiscal framework that allows the construction of social housing with “more agility” and at “reasonable prices”, especially in stressed areas or with relevant problems, as well as the approval with new regulations and municipal ordinances of the participation of companies in the real estate sector in sustainable projects from a social and financial point of view.
Likewise, the consultancy exposes the need to incorporate “agile and safe” formulas from a legal point of view to attract investors willing to bet on affordable housing for low-income groups, but capable of generating value; the efficient use of public land for the construction of new publicly owned social housing with efficient management and focused on groups at risk of exclusion; It is committed to the conversion of offices into homes and to facilitate the conversion of land for tertiary use (offices and commercial) located in secondary locations in affordable housing areas managed by third parties.
“This change would be promoted through public-private collaboration and it is possible to undertake it since, in many cases, this land does not have value as tertiary, but as managed residential,” he says.
It also recommends promoting programs called ‘Housing First and Housing Led’, which stand out in the provision of housing, but with personalized social support from social services professionals and continuous monitoring; the launch and execution of projects with the contribution of resources by investors and companies in the real estate sector; the contribution of funds, resources or real estate that can be used in social support programs for homeless people; the articulation of agile formulas to support and finance projects to help homeless people by civil society.
“The current responses to homelessness are not managing to reverse this phenomenon but, on the contrary, it is increasing. Therefore, it is in the hands of all the agents involved (investors, individuals and administrations) to encourage a dialogue that provides new ideas capable of providing a solution to this pressing problem. With the focus on the investor, it is time to promote those initiatives of a private residential nature, based on impact investments, but also profitable, sustainable and committed”, stated the partner responsible for the Private Equity sector and Managing Partner of Strategy and Transactions at EY, Juan López del Alcázar.
For her part, the president of the SOCIMI, Blanca Hernández, has stated that homelessness is the “most important” social problem in society and that administrations and impact investors have funds to support NGOs with rentals of empty houses of housing capable of removing homeless people from the streets.
