The regional government’s draft budget increases funding for housing and urban policy by 19%.
The Basque Government Council has approved its draft budget for 2027, with total spending of €17.629 billion, up 7.6% from 2026. Of that total, €504 million will go to the Department of Housing and Urban Agenda, a 19% increase.
Basque Housing Minister Denis Itxaso described access to housing as “a crisis affecting the most vulnerable people as well as young people in work, working families and the middle class. A budget is a statement of priorities, and the figures reflect those choices.”
Itxaso outlined four priorities for the funding. These are expanding the supply of subsidized and affordable rental homes, bringing vacant properties back into use, strengthening financial assistance and renovating existing homes.
Of the department’s budget, €493 million will go directly to housing. That includes €413.1 million for the Basque Government’s rental program, which plans to start construction on 1,840 publicly subsidized homes and apartments on land designated for public facilities in 2027.
Land for 10,000 homes and protections for existing subsidized housing
The first proposed legal reform would allow land to be allocated directly to the Social Housing Fund. The aim is to make land available for 10,000 new affordable rental homes for working- and middle-income households through public-private partnerships under public planning oversight.
The second proposal would extend the temporary protected status of subsidized homes dating from before 2003 in designated strained housing markets. Some of those homes could lose their protected status from 2027 onward.
“It would make little sense to ask the public to spend more on building new subsidized homes while allowing part of the existing stock to slip away,” Itxaso said.
A public real estate agency to oversee subsidized home sales
The third proposal would create a public real estate agency to oversee the resale of subsidized homes. When a privately owned subsidized home is sold, buyers would be selected from the official register of applicants. Selection would take into account household needs, how long applicants have been registered and their income.
According to the Basque Government, around 1,000 privately owned subsidized homes are sold in the region each year. The measure aims to make the allocation process transparent and prevent sellers from charging hidden premiums.
“Public support for subsidized housing must never become an opportunity for private abuse,” Itxaso said.
Itxaso also said that in 2027 the Basque Government would seek to amend a bill currently before Parliament that aims to simplify and speed up procedures for sustainable economic activity. The amendment would allow publicly subsidized housing developments to qualify as Projects of Overriding Public Interest.
This would allow the Government Council to approve strategic developments once it establishes that they serve the public interest and help meet demand for subsidized housing. It would also make it easier to incorporate them into regional and urban plans while respecting statutory safeguards and land reservation requirements.
“Land earmarked for housing can sit undeveloped for years. We need to look at the whole picture, anticipate demand and have the tools to turn plans into homes,” Itxaso said.
€83 million in financial assistance, €30 million for young people and more than €80 million for renovation
The draft budget allocates €83 million to financial assistance, €18 million more than in 2026. Funding can be increased to cover everyone formally recognized as eligible.
Funding for Gaztelagun, a program that helps young people move into their own homes, will rise to €30 million and can also be increased. The government will continue to reserve 50% of affordable rental homes for people under 36. “The housing crisis is delaying major life milestones for an entire generation,” Itxaso said.
The Directorate for Housing Renovation and Neighborhood Regeneration will receive €81.49 million. New grants to improve living conditions, accessibility and energy efficiency total €56.8 million, including funding for 2027.
“The housing crisis remains unresolved. The Basque Country is building a stronger, more comprehensive response that addresses its underlying causes. Affordable housing is essential if people are to live independently and make plans for their future,” Itxaso said.
