The demand-side determinants of multiple property ownership in Spain

Abstract

Home ownership is the usual form of tenancy in Spain and is particularly widespread across all social classes for different historical and cultural reasons. In this context, multiple property ownership (MPO) is not limited to the wealthy. It takes on different forms that have different explanations. Statistics reveal the existence of millions of second homes, private rented properties and a vast number of vacant houses, all of which are illustrative of a complex residential environment. This paper aims to quantify and analyse the types of multiple property in Spain from the demand side, focusing on individual and household owners, drawing on a variety of quantitative data sources. On the aggregate level, the number and type of multiple properties varies depending on geographical factors (coast versus inland; rural versus urban) and the characteristics of the buildings. On the micro level, we have used individual variables to model the demand-side determinants of single property and MPO. This reveals that the relevant variables are not the same for the two groups. MPO in Spain is not only linked to socioeconomic status and savings capacity, pointing to the need for more differentiated explanations.

Keywords:

• home ownership
• second homes
• vacant housing
• private rental
• Spain

Notes

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes

1 We do not consider who the owner is (as our main data source, the census, does not record this information).

2 This includes properties owned by individuals and household owners as well as corporate owners. In the empirical analysis below, the focus will be on MPO owned by households and individuals.

3 This is an out-dated information that helps us to picture the overall importance of inheritance on second homes, nonetheless.

4 A completely different type of inland second home can be attributed to the tourist appeal of protected natural areas and other amenities, such as ski resorts (Barke, 2007). This type is, however, more concentrated and less frequent overall.

5 Other studies based in the census focus only on second homes, and they also tend to include second homes rented by the household, thus not owned by them.

6 Although the information provided by this survey is unique in its treatment of vacant homes, the results should be treated carefully, as she subsample size is very small (only 65 respondents, 2.63% of the overall sample).

7 This overrepresentation would be even greater if we were able to include rental holiday homes, but the latest data available are from the 1991 Census (INE, 1991).

8 Most of the people in the category ‘Other households’ are families with children who also live with other adults.