'Zombie Buildings' Plague Spain's Economy

The burst of the housing bubble is still causing major economic turmoil in Spain, where 1.5 million "zombie" housing units sit empty.

"Some 1.5 million unfinished, unsold or unwanted residential units stand scattered across the country, products of a still-deflating housing bubble that threatens to undermine Spain's broader economy for years to come. It is the hangover after an epic fiesta, a period Spaniards now refer to as 'cuando pensábamos que éramos ricos'-'when we thought we were rich.'

Once hailed as early proof of the success of the euro, Europe's single currency, Spain's low interest rates from the mid-1990s and its proximity to richer neighbors ushered in a decade-long period of prosperity.

Now, as a recovery remains elusive across the continent, Spain's ability to revive growth is considered a vital test of the future stability of the currency and Europe's economic health."

The building boom and a fleet of bad loans have left Spain's housing market in a painful spot, one similar to that being faced in the U.S.

Full Story: Zombie Buildings Shadow Spain's Economic Future

Comments

Prepare for the AICP* Exam

Join the thousands of students who have utilized the Planetizen AICP* Exam Preparation Class to prepare for the American Planning Association's AICP* exam.
Starting at $245
AICP CTP Storefont Display

The first online AICP* CTP exam prep class

Are you ready to take the AICP* Certified Transportation Planner exam?
Priced at $245 for May exam!
Book cover of Unsprawl

Unsprawl: Remixing Spaces as Places

Explore visionary, controversial and ultimately successful strategies for building people-centered places.
Starting at $12.95
Book cover of Insider's Guide to Careers in Urban Planning

So you want to be a planner...

Check out our behind the scenes look at 25 careers in the Urban Planning field
Starting at $14.95