migrants and social housing in spain: the case of the basque country

2014 ENHR Conference

WS-14 Minority Ethnic Groups and Housing

Migrants and Social Housing in Spain: the case of the Basque Country

Authors: Arkaitz Fullaondo Elordui Zapaterietxe 1 Basque Observatory of Immigration, University of the Basque Country2 Iraide Fernandez Aragón3 Basque Observatory of Immigration, University of the Basque Country Maite Fouassier Zam4alloa Basque Observatory of Immigration, University of the Basque Country Abstract The economic crisis has changed the international migration dynamic of Spain. In a few years, Spain has gone from being one of the countries with the highest increase in immigration in Europe to losing population as a result of emigration by both foreigners and nationals. In the recent past, the economic growth motivated by the real estate bubble acted as a pull factor for international immigration flows. The Spanish housing market is characterized by the prevalence of ownership while social housing is of less importance. On the other hand, in Spain there is a significant lack of data and studies on access to public housing by the foreign population. The purpose of this paper is to analyse the demand and level of access of the foreign population to social housing in the Basque Country, one of the Autonomous Communities with a higher ratio of social housing. The study is based on an analysis of applicants for social housing and allocation contracts. To this end we use the databases of Etxebide, the Housing Service of the Basque Government.

1 Contact: [email protected] 2 Address: Edif. Biblioteca Central, 6º piso UPV/EHU, Barrio Sarriena, s/n 48940 Leioa. Basque Country 3 Contact: [email protected] 4 Contact: [email protected]


2 2014 ENHR Conference

Introduction

The economic crisis has changed the international migration dynamic of Spain. In a few years, Spain has gone from being one of the countries with the highest increase in immigration in Europe to losing population as a result of emigration by both foreigners and nationals. In the recent past, the economic growth motivated by the real estate bubble acted as a pull factor for international immigration flows. There is thus a strong relationship between the dynamic of the Spanish housing market and the international immigration phenomenon (Gonzalez & Ortega, 2013). The Spanish housing market is characterized by the prevalence of ownership while social housing is of less importance. From 2001 to 2012, 5,635,204 dwellings were built, of which only 12.1% was classified as social housing. Moreover, 78.9 % of households live in a home that they own, while only 13.5 % are living in rented dwellings. In this context, until 2008 the housing trajectory of the foreign population over the previous ten years was based on a path of improvement and access to home ownership (Fullaondo, 2008; Almirall & Frizzera 2008). Since 2009 the crisis has radically broken this upward process. The foreign population faces larger difficulties in gaining access to housing and the expulsion of thousands of families from their dwellings through eviction proceedings has become a social reality. Moreover, studies of the migratory phenomenon and housing in Spain have focused on issues related to access to the housing market (Leal & Aguacil, 2012; IOE, 2004), discrimination (Gutierrez & Jarabo, 2013), the dynamics of residential segregation (Fullaondo, 2009; Musterd & Fullaondo, 2008; Bayona 2011), housing conditions and coexistence in the public space (Gutiérrez & Ciocoletto & García-Almirall, 2011). Accordingly, it is necessary to determine the extent to which public housing policies are being effective in addressing this problem. However, in Spain there is a significant lack of data and studies on access to public housing by the foreign population. The purpose of this paper is to analyse the demand and level of access of the foreign population to social housing in the Basque Country, one of the Autonomous Communities with a higher ratio of social housing. The study is based on an analysis of applicants for social housing and allocation contracts. To this end we use the databases of Etxebide, the Housing Service of the Basque Government. These applicant and allocation databases provide information for each case individually, which allows us to obtain a precise knowledge of the applicant’s housing needs and profile and the relationship between demand and allocation, for both foreigners and nationals. The databases provide indicators such as age, sex, income, family typology, demand typology and location from 2005 to 2012. This paper aims to provide an assessment of social housing policy in the Basque Country with regard to the housing needs of the foreign population. As we will see, there is an increasing demand for social housing by the foreign population which is not covered by the allocations.



1. Migrants and Social Housing in Europe: A general approach Access to housing and housing conditions are two basic factors in the process of integration of the immigrant population (Ponzo, 2010). The housing market of the receiver society conditions the process of insertion and the residential trajectories of the immigrant population, from their arrival to when they become settled. In the Spanish case this residential trajectory has been characterized by initial access through renting a room, subsequently renting a home, and finally the purchase of a home (Fullaondo, 2008). In this respect, the housing policies of each country generate different property contexts in terms of tenancy regime, weight of social housing, prices, market freedom and assistance for access (Trilla, 2001). According to Trilla (2001), in general terms there are significant differences in the European setting between housing policies and property contexts which are differentiated mainly by tenancy regimes and the significance of rented public housing. Three types of country can be observed: those that still have a significant sector of private rented property (Switzerland, Germany, Luxemburg, Belgium and Denmark), those that have a significant percentage of social rented property (Holland, Austria, Sweden and France) and those where owners are predominant (Spain, Ireland, Italy, Greece, Portugal, the United Kingdom and Finland). Another of the characteristics to bear in mind when characterizing the residential contexts of countries is the stock of social housing. These different stocks are the result of the different social housing policies developed in each country. However, in the case of public social housing policies at the European level, there is a great diversity even in the concept of social housing itself. As Czischke & Pittini (2007) note “Social housing in the European Union is characterised by the wide diversity of national housing situations, conceptions and policies across member states and, thus, by the lack of a common definition of ‘social housing’ at the European level” (Czischke & Pittini: 9, 2007). However, the mission to be fulfilled by housing policy is more or less the same in EU countries, namely to satisfy housing needs in terms of guaranteeing access, decent housing conditions and affordable prices. The aim of this mission is to satisfy the needs of those people who cannot gain access to the free market, that is, people at a social disadvantage and vulnerable social groups (Czischke & Pittini, 2007).

On the other hand, the social housing policy has been evolving since its emergence in the XIX century. The first steps in social housing in Europe were taken in the XIX century as a result of the industrial revolution and massive urbanization. However, it was not until after the Second World War that the first social housing policies were implemented in order to guarantee access to housing by the working classes and middle classes. From the 1970s a change occurred with a greater orientation towards the market, and in the 1980s governments started to develop a social housing policy aimed at vulnerable groups, amongst them the immigrant collective (Ponzo, 2010). The different systems of social housing are defined by the property regime, the providers of social housing, those who fund them and their beneficiaries. In the case of the property regime, while it is true that the majority of social housing in Europe is rented, there is also social housing that is owner-occupied. The countries with the greatest percentage of rented social housing are Holland and Austria, where 32% and



23% respectively of the total property stock is rented social housing. They are followed by Denmark (19%), Sweden (18%), the United Kingdom (18%), France (17%), Finland (16%) and the Czech Republic (17%). In the case of Spain rented social housing only represents 2% of the total property stock (Pittini & Laino, 2011). With respect to the providers of social housing, there is a great variety of agents, ranging from city councils to public companies, and including not-for-profit organizations and companies, cooperatives and even including profit-seeking private companies and investors. With respect to the beneficiaries of social housing, the most widespread criterion for allocation is income and certain groups, due to their social characteristics, objectively have greater problems in obtaining a home on the free market. However, criteria for defining beneficiaries tend to vary according to local needs. A general tendency can be observed of greater restriction through the establishment of stricter criteria. At the same time, a growing tendency of applicants for social housing can be observed while the stock of social housing is diminishing, which generates greater competition for its allocation (Pittini & Laino, 2011). With respect to the relation between the foreign population and social housing, in the majority of European countries with a long migratory trajectory and a significant tradition of social housing policy, the immigrant collective has been one of the principal beneficiaries. On many occasions, social housing has been built involving big, spatially concentrated, urban development projects. This spatial concentration of social housing has influenced the processes of residential segregation of the foreign population. In this respect, in the framework of the debate between the advantages and disadvantages of segregation, there has been a broad debate in recent years over the influence of the segregation of the foreign population in the process of social integration (Bolt & Özüekren & Phillips, 2010; Phillips, 2010). Social housing policy is one of the central elements within this debate. Beyond questions like access to a home or housing conditions, attention is focused on avoiding spatial concentration. Thus, in recent years different governments have placed the emphasis on policies of social mixing and housing as a form of addressing segregation and improving integration; nonetheless, there is no evidence that these policies are effective (Musterd & Fullaondo, 2008; Ponzo 2010). 2. Social housing policy and immigration in Spain: Some considerations With respect to housing, rhythms and legislation develop differently in the majority of the EU countries compared to Spain and the Basque Autonomous Community. The increase in construction in Spain occurred years after the rest of Europe and the first legislation on housing questions was passed during the Francoist dictatorship, which sought to cover different objectives, basically to provide shelter in the cities for people who emigrated from the countryside. Rodriguez (2011) identifies three defining dimensions in this policy, which differs greatly from European policy:

• Access to home ownership was encouraged, unlike the European models that diversified forms of access, at least initially.



• Consideration was not given to creating a pool of social housing managed directly by the public administration or by not-for-profit bodies; instead they proceeded directly to the construction and direct sale of social housings. • Advantage was not taken of the period of economic growth to tackle the problem of freezing rents, with the resulting deterioration of the pool.

Concerning immigration and housing, since the 1980s Spain has developed a decentralized housing policy5, which means that situations vary enormously depending on the Autonomous Community, which is the entity that manages housing. The central government has a housing department that focuses on coordinating the distribution of economic resources. In 2007, this body developed the Strategic Plan of Citizenship and Intervention 2007-2010, whose basic aims were equality of opportunities and non-discrimination, the principle of citizenship (participation) and interculturality and respect for cultural diversity. This plan contained different measures to guarantee the integration of foreign immigrants in education, health, employment and housing. With respect to housing, the plan set out four clear aims: widening the market of social housingto meet the demand of all those who could not gain access to private housing; achieve a greater balance between the forms of housing tenancy; increase construction land for social housing; and allocate measures to particular groups at risk of social exclusion. In spite of the scale of the actions and the importance of housing in processes of social integration (especially for immigrants), the housing section was provided with 1.6% of the total budget (32 million €). Only 42.4% of this budget was implemented. This plan was re-elaborated in 2011and has been in effect until this very year, 2014. It includes the objective of inclusion or creating processes that involve overcoming social disadvantages (in line with European housing policies). Nonetheless, housing disappears as a specific section and is included as part of the package of “social services and inclusion”, without being assigned a specific budget. In spite of the existence of this general framework, each Autonomous Community adopts its own measures and designs specific plans for this collective, producing different results and situations in each territory. 3. Principal characteristics of public housing policy in the Basque Country The public housing policy in the Basque Country is developed by the Basque Government, the administration with competency in this question. According to the Master Housing Plan 2013-2016, the main elements of housing policy are: i) to encourage rent, ii) to guarantee access to housing for young people, iii) to support people without housing at risk of exclusion, and iv) to adapt and rehabilitate houses and sustainable construction (Gobierno Vasco, 2013). Public housing policy is managed through Etxebide, the Basque Housing Service, the body that centralizes the demand for social housing and manages the allocation of a large part of social housing.

5 Competencies in housing questions are transferred to the Autonomous Communities. Spain is formed of 17 Autonomous Communities with different sizes, population densities and GDPs.



The provision of social housing is done through the construction of new homes and by acquiring used homes on the free market through the Bizigune program. The construction of new homes is done through different agents and public companies of the Basque Government itself, some city councils, provincial councils (deputations), cooperatives and private profit-seeking companies. Urban development regulation in the Basque Country establishes certain reserves of land for housing that oblige housing developers to build a percentage of social housings, 20% of construction on land classified as urban and 65-75% on land classified as developable. This reservation of land by law is the basic pillar of the public housing policy and the guarantee of its development. For its part, the Bizigune program aims to acquire empty homes from private owners to transfer them to the rental market of social housing. At the same time, the criteria for defining the beneficiaries of social housing are established through a mixture of income criteria and target groups (Observatorio Vasco de la Vivienda, 2012). The main criterion is family income; depending on income it is possible to have access to different types of social housing: • Rental of special officially social housings: from 3,000€ to 25,000€;

• Purchase of special officially social housings: from 9,000€ to 25,000€; • Rental of general officially social housings: from 3,000€ to 39,000€; • Purchase of general officially social housings: from 9,000€ to 39,000€; • Purchase and rental of homes with a controlled price and belonging to the Autonomous Community: from 12,000€ to 50,000€; • For victims of gender violence and disabled people with reduced mobility there is no minimum income for rentals, and for the latter the minimum for purchase is 3,000€.

Other requirements are the length of time registered in the municipality where a home has been requested, being an adult or an emancipated minor, not owning a home and not having been the recipient of a social housing. For those people who meet the requirements the allocation of social housings is done by lottery. In this lottery it is possible to reserve quotas of homes for target groups depending on local needs. Normally, the groups tend to be disabled people, victims of gender violence and young people. Nationality has never been considered a variable for defining a target group. 4. Property market and social housing in the Basque Country The housing sector in the Basque Country is characterized by a tenancy regime principally centered on ownership, an increase in the weight of social housing new housing developments, and a great difference of price between social housings and homes on the free market. Indeed, one of the main aims of the housing policy is precisely to encourage rented homes and to balance a property market that is centered almost exclusively on home ownership. In Figure 1 we can see the distribution of the housing market offer based on homes for sale (new or used) and for rent.



Figure 1. Offer of homes for sale (new or used) and for rent, % (2000-2012).

Source: Basque Observatory of Housing. Basque Government

It can be clearly seen that the percentage of homes for rent on the market is residual and that there is a predominance of homes for sale. In 2012, 68.2% of homes on the market were second-hand homes for sale, 25.1% new homes and only 6.7% were homes for rent. Between the years 2004 and 2006 the effect of the boom in construction can be seen, with newly built homes for sale representing 50% of the market. In the case of homes for rent, 2006 with 11.8% and 2009 with 12.3% are the years with a larger market percentage. These data are the result of policies encouraging home ownership, property speculation and the culture of ownership that is widespread in Basque society. In Table 1 we can see that 9.8% of the population lives in a rented home, with an even lower percentage amongst the native population (5.7%). On the contrary, 68.6% of foreigners live in rented homes.

Table 1. Tenancy regime by nationality (2011) Total Nationals Foreigners n % n % n %

Own home, fully paid 973.000 44,8 961.310 47,3 11.695 8,3

Own home, payments pending 751.510 34,6 727.185 35,8 24.325 17,2 Own home, inheritance or donation 112.615 5,2 110.325 5,4 2.290 1,6

Rented 213.215 9,8 116.210 5,7 97.010 68,6

Ceded free or at low price 33.130 1,5 30.730 1,5 2.400 1,7

Other form 89.790 4,1 85.995 4,2 3.795 2,7

Total 2.173.265 100 2.031.755 100 141.510 100 Source: 2011 Population and Housing Census.Spanish Statistical Office

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This difference is explained by the migratory process itself and its different stages, where renting is the main form of gaining access to a home by the recently arrived immigrant population. However, it is relevant that 25% of the foreign population live in their own home, with 17.2% in a home with payments pending. This collective represents that part of the foreign population that has progressed in its migratory trajectory and gained access to home ownership. On the other hand, as we noted above, social housing has been acquiring greater weight in the construction of new housing. Since 2005 the percentage represented by social housing in the construction of new homes has been increasing. In 2005 it represented 25% of the total of new homes completed, while in 2011 and 2012 it represented 49.5% and 44.6% respectively. Figure 2. Private and social housing homes built in the Basque Country, % (2005-

2012)

Source: Basque Observatory of Housing. Basque Government

Out of the total number of homes built in the Basque Country in this period of time, 36% were publicly subsidized and 64% were private. This dynamic has enabled the Basque Country to build up a pool of public housing of sufficient size to implement a housing policy with certain guarantees. Besides, for a wide spectrum of the population social housing is the only way to gain access to a home, due to the sharp increase in the price of both used and new homes in recent years, which has increased the difference in prices between the free housing market and that of social housing.

26 33 30 36 35

44 50 45

74 67 70 64 65

56 50 55

0%

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2005 2006 2007 2008 2009 2010 2011 2012

Social Housing Private Market



Table 2. Price of social housing and private dwellings in the Basque Country (2000-2012)

New Home Used Home

Total Private market

Difference SH-New

PM

Difference SH-Used

PM Social

Housing Private Market

2000 750 1,839 2,339 2,168 1,089 1,590 2001 815 2,220 2,408 2,361 1,405 1,594 2002 898 2,346 2,595 2,531 1,448 1,697 2003 966 2,510 3,338 3,060 1,544 2,373 2004 1,085 2,905 3,596 3,327 1,820 2,512 2005 1,237 3,369 3,936 3,715 2,132 2,698 2006 1,285 3,646 4,273 4,047 2,361 2,988 2007 1,323 4,113 4,356 4,284 2,790 3,033 2008 1,372 4,054 4,199 4,160 2,682 2,827 2009 1,469 4,033 3,779 3,847 2,564 2,310 2010 1,474 3,877 3,891 3,888 2,403 2,417 2011 1,532 3,769 3,842 3,830 2,237 2,309 2012 1,585 3,742 3,565 3,596 2,157 1,979

Source: Basque Observatory of Housing. Basque Government As can be seen in Table 2 the price of private homes for sale in the year 2000 was 2,530€ per square meter, while in 2007 the figure was 4,283€ per square meter, which was an increase of 70% in seven years. From 2007 onwards the price fell as a result of the economic crisis. In the case of social housing, prices also increase but in a more stable and continuous way. The prices for social housing are fixed by the government and (in theory) do not obey market dynamics. In the year 2000, used housing was 212% more expensive than social housing, while new housing was 145% more. In 2007 the difference increased, used housing was 220% more expensive and new housing 211% more. In 2012 with the eruption of the crisis, the difference is smaller but continues to be very significant: 124% more expensive in the case of used housing and 136% in the case of new. These data show how social housing is the access route for the population with fewer resources, amongst them the immigrant collective. On the other hand, as on the market, public housing policy has mainly been centered on the construction of homes for sale and not for rent. As can be observed in Table 3, out of the total of social housings built between 2005 and 2012, 70% were for sale and 30% for rent.



Table 3. Social housing built in the Basque Country, for sale or for rent (2005-2012)

2005 2006 2007 2008 2009 2010 2011 2012 2005-2012

n n n n n n n n n For Sale 3.071 3.539 3.541 3.441 3.945 4.259 4.626 3.333 29.755 For Rent 2.369 2.321 1.878 2.393 1.186 916 1.178 502 12.743 Total Social Housing 5.440 5.860 5.419 5.834 5.131 5.175 5.804 3.835 42.498 % % % % % % % % % For Sale 56,5 60,4 65,3 59,0 76,9 82,3 79,7 86,9 70,0 For Rent 43,5 39,6 34,7 41,0 23,1 17,7 20,3 13,1 30,0 Total Social Housing 100 100 100 100 100 100 100 100 100

Source: Basque Observatory of Housing. Basque Government 5. Demand for social housing in the Basque Country Like the rest of Spain, the Basque Country has experienced an important growth in its foreign population due to migration. As can be seen in Table 4, the population of foreign nationality represented 6.9% of the total population in 2012, while it was 3.4% in 2005. In this period of seven years the foreign population increased by 79,000 people, which means an increase of 108%. At the same time, the number for the native population fell by 10,000 people. These data highlight the intensity and relevance of the migratory phenomenon in the Basque Country, which, while it cannot be compared with other territories with mature or intense migratory situations, does show us the appearance of a new social collective that public housing policies must attend to. In this section we will analyze the demand for social housing by exploiting the database of applicants in Etxebide, the Housing Service of the Basque Government. In 2012, the number of people requesting social housing in the Basque Country was 108,115 people, of whom 75.8% were nationals and 24.2% foreigners. If we compare these data with the percentage of 6.9% that the foreign population represents in the Basque Country, we can observe a clear over-representation of this collective in the list of housing applicants in comparison with its demographic weight.

We can identify several tendencies in the evolution between 2005 and 2012. In the first place, there is a fall in the number of applicants, which drops from 116,049 in 2005 to 108,115 in 2012, which represents a fall of about 8,000 people. This fall is due exclusively to the fall in native applicants, who drop from 109,624 applicants to 81,982, that is, 27,642 applicants less. On the contrary, the number of foreigners on the lists of Etxebide rises from 6,425 people in 2005 to 26,133 in 2012, in total 19,708 people more. As we will see later on, one of the main reasons for these dynamics is the inequality in the allocations of social housing.



Table 4. National and foreign applicants for social housing and % of foreign population in the Basque Country (2005-2012)

2005 2006 2007 2008 2009 2010 2011 2012

n n n n n n n n Foreigners 6.425 7.387 8.981 11.374 13.895 20.176 24.548 26.133 Nationals 109.624 97.908 102.657 102.850 101.824 90.298 84.537 81.982 Total 116.049 105.295 111.638 114.224 115.719 110.474 109.085 108.115 % % % % % % % % Foreigners 5,5 7,0 8,0 10,0 12,0 18,3 22,5 24,2 Nationals 94,5 93,0 92,0 90,0 88,0 81,7 77,5 75,8 Total 100 100 100 100 100 100 100 100 Foreign population (%)

3,4 4,0 4,6 5,4 6,1 6,4 6,7 6,9

Source: Etxebide, Housing Service of the Basque Government and Spanish Statistical Office Another significant aspect of the demand is the type of request, whether it is individual or family. The type of home requested by a single person or a family is different insofar as their housing needs are different, for example in floor space and number of bedrooms. As can be seen in Table 5, the application files clearly show the different profile of applications by the native population and the foreign population. In the case of the native population in 2012, 75.2% were individual applications and 24.8% family ones. In the case of the foreign population the distribution was the opposite, 39.4% individual applications against 60.6% family ones. However, the evolution between 2005 and 2012 shows a significant tendency within the foreign collective. In this period the percentage of individual applications increases from 26.8% to 39.4%, that is, an increase of 12.5%, while the percentage of family applications falls from 73.2% to 60.6%. The difference in the type of application between nationals and foreigners is related to both age and the migratory project. Amongst the native population the people who request social housing are those who cannot gain access to the private market due to a lack of economic resources. Here, one of the main collectives is the young population which is characterized by its having few resources and economic problems for becoming independent.



Table 5. Nationals and foreign population by files and type of application of social housing

(2005-2012) 2005 2006 2007 2008 2009 2010 2011 2012 Foreigners n n n n n n n n Individual application 1.305 1.559 1.949 2.390 3.044 5.361 6.299 7.766 Family application 3.561 4.031 4.820 6.028 7.109 9.315 11.795 11.965

Total 4.866 5.590 6.769 8.418 10.153 14.676 18.094 19.731

Nationals n n n n n n n n Individual application 67.737 62.407 67.958 66.272 66.995 58.892 54.399 51.306 Family application 22.398 19.245 18.977 19.922 18.997 17.196 16.526 16.889

Total 90.135 81.652 86.935 86.194 85.992 76.088 70.925 68.195

Foreigners % % % % % % % % Individual application 26,8 27,9 28,8 28,4 30,0 36,5 34,8 39,4 Family application 73,2 72,1 71,2 71,6 70,0 63,5 65,2 60,6

Nationals % % % % % % % % Individual application 75,2 76,4 78,2 76,9 77,9 77,4 76,7 75,2 Family application 24,8 23,6 21,8 23,1 22,1 22,6 23,3 24,8 Source: Etxebide, Housing Service of the Basque Government As can be seen in Figure 3, 50% of native applicants are aged below 35 years and one in five is aged between 25-29 years. In the case of the foreign population the applicant profile is that of a family which needs a social housing due to lack of resources. In this case, 50% of applicants are over 35 years.

Figure 3. National and foreign applicants of social housing by age (2012)

Source: Etxebide, Housing Service of the Basque Government

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With respect to the tenancy regime of the requested home, Table 6 shows three types of application, those that exclusively request home ownership, those that exclusively request a rented home, and those that are indifferent about requesting either home ownership or a rented home. The results once again show significant differences between nationals and foreigners although in recent years there have been significant changes in property culture due to the economic crisis. In 2012, 48.2% of nationals requested either home ownership or a rented home, 27.3% a rented home only and 24.5% home ownership only. The evolution shows a very significant change: in 2005, 49.4% exclusively requested home ownership while 17.8% exclusively requested a rented home. Table 6. National and foreign population by type of application of social housing,

% (2005-2012)

2005 2006 2007 2008 2009 2010 2011 2012 Foreigners Ownership 15,3 11,0 9,5 9,4 7,9 4,1 3,0 1,0

Rented 44,0 50,8 51,0 49,1 51,8 67,7 76,1 57,0

Indifferent 40,7 38,2 39,5 41,6 40,3 28,1 20,9 42,0

Nationals

Ownership 49,4 44,4 43,6 43,2 41,7 35,2 32,0 24,5

Rented 17,8 21,4 20,5 20,0 19,6 23,4 27,0 27,3

Indifferent 32,8 34,2 35,9 36,8 38,7 41,4 41,0 48,2 Source: Etxebide, Housing Service of the Basque Government With respect to the foreign population, the data for 2012 show that 57% exclusively opted for a rented home while 42% applied indifferently for home ownership or a rented home. Virtually no foreigners made applications for home ownership exclusively. The evolution since 2005 shows a strengthening of the option for rented homes exclusively, which rises from 44% to 57%, while home ownership exclusively drops from 15.3% in 2005 to practically disappear in 2012. The option of buying or renting remains stable although it recovers between 2011 and 2012, rising from 20% to 42%. Another factor to bear in mind in relation to access to housing and public housing policy are the economic incomes of both individuals and households. In Table 7 we can see the distribution of aggregate family incomes of each application file held by Etxebide. The data clearly show the unequal economic capacity between the native and foreign population. In 2012, 18.2% of the files of the foreign population had no income at all, while 26% had annual incomes below 9,000€ and 46% between 9,000 and 25,000€. In other words, about 90% of the applications by foreigners had incomes below 25,000€. Moreover, the evolution since 2009 shows a clear deterioration in the economic circumstances of foreign applicants. Between 2009 and 2012 foreign applicants without incomes increased by 12%, while those who had between 9,000 and 25,000€ fell by 9%.



Table 7. Native and foreign population social housing applicants by incomes (2009-2012)

2009 2010 2011 2012 Nationals Foreigners Nationals Foreigners Nationals Foreigners Nationals Foreigners

No income 1.1 6.9 1.4 5.9 3.1 15.6 3.3 18.2 <9,000 12.3 24.7 12.9 25.9 12.8 21.5 13.2 26.3

9,000-25,000 63.9 55.8 57.9 55.6 59.0 53.7 56.2 46.3 25,000-39,000 20.1 11.1 22.6 9.0 20.6 7.6 20.9 5.8 39,000-50,000 2.4 1.3 3.8 1.3 3.4 1.1 3.9 0.9

>50,000 0.3 0.2 1.4 2.3 1.2 50.0 2.5 2.6 Source: Etxebide, Housing Service of the Basque Government In the case of the native population, 56% of the files have incomes between 9,000 and 25,000€ annually, while 20% have between 25,000 and 39,000€. Only 3% have no income and 13% less than 9,000€ annually. 6. Allocations of social housing in the Basque Country Having analyzed the profile of the demand for public housing, in this section we will analyze the results of housing policy in terms of access through allocations. For this purpose, we will focus on analyzing the data for signed contracts for public homes. As can be seen in Table 8, between 2009 and 2012 a total of 31,211 contracts allocating a publicly social housing were signed in the Basque Country, 74.5% for home ownership and 25.5% for rented homes. These data clearly show the result of a public housing policy principally oriented towards ownership. Between 2009 and 2011, the number of contracts signed rose from 8,166 to 8,559, while in 2012 it fell to 7,003 contracts signed.

Table 8. Total of public housing allocated by rent and ownership (2009-2012) 2009 2010 2011 2012 2009-2012 n % n % n % n % n %

Rented 1.994 24,4 1.542 20,6 1.881 22,0 2.545 36,3 7.962 25,5

Ownership 6.172 75,6 5.941 79,4 6.678 78,0 4.458 63,7 23.249 74,5

Total 8.166 100 7.483 100 8.559 100 7.003 100 31.211 100,0 Source: Etxebide, Housing Service of the Basque Government Another of the characteristics of this evolution is the increase in the weight of rented homes. The evolution from 2009 shows an increase in the weight of rented homes against ownership, while in 2009 rented homes represented 24.5% of the contracts, in 2012 the figure was 36.3%. This increase points towards a change in the tendency towards ownership envisaged in the aims of the Master Housing Plan 2013-2016 of the Basque Government6 (Gobierno Vasco, 2012).

6 1) To encourage rent.



Table 9 shows the comparison between the demand (files) and allocations according to the origin of the applicant. In the first place, we can see that between 2009 and 2012 foreign applicants were allocated 7.7% of the social housings, while nationals were allocated 92.3% of such homes; in absolute numbers 2,411 foreign applicants against 28,800 nationals. Since 2009, allocations to foreign applicants increased from 6% (486 applications) to 10% (710 applications) in 2012. It is interesting to compare the data for allocations with those for requests. For this same year, foreigners represented 22% of the demand for public housing against 77.6% of nationals, however only 10.1% of the final allocations were to foreigners, showing a clear disadvantage when it comes to gaining access to a public home by this collective.

Table 9. Demand and allocation of Social Housing by national and foreign population (2009-2012)

2009 2010 2011 2012 2009-2012 n % n % n % n % n %

Allocation Foreigners 486 6,0 618 8,3 597 7,0 710 10,1 2.411 7,7

Nationals 7.680 94,0 6.865 91,7 7.962 93,0 6.293 89,9 28.800 92,3

Total 8.166 100 7.483 100 8.559 100 7.003 100 31.211 100

Demand Foreigners 10.153 10,6 14.676 16,2 18.094 20,3 19.731 22,4

Nationals 85.992 89,4 76.088 83,8 70.925 79,7 68.195 77,6

Total 96.145 100 90.764 100 89.019 100 87.926 100 Source: Etxebide, Housing Service of the Basque Government Besides accounting for only 10% of allocations, the type of housing to which they gain access is also different, reproducing the unequal tendency of the private housing market where the majority of nationals tend to home ownership and foreigners to rented homes. In Table 10 below, we can see that in the 2009-2012 period the majority option in access to a public home in the case of nationals is home ownership, 78.8% against 21.2% who gain access to a rented home. Foreigners, on the contrary, basically gain access to rented public homes, 76.9%, against 23.1% who gain access to home ownership.

Table 10. Allocations of Social Housing by type and nationality (2009-2012)

2009 2010 2011 2012 2009-2012 n % n % n % n % n % Foreigners Rented 345 71,0 470 76,1 436 73,0 602 84,8 1.853 76,9 Ownership 141 29,0 148 23,9 161 27,0 108 15,2 558 23,1 Total 486 100 618 100 597 100 710 100 2.411 100 Nationals Rented 1.649 21,5 1.072 15,6 1.445 18,1 1.943 30,9 6.109 21,2 Ownership 6.031 78,5 5.793 84,4 6.517 81,9 4.350 69,1 22.691 78,8 Total 7.680 100 6.865 100 7.962 100 6.293 100 28.800 100

Source: Etxebide, Housing Service of the Basque Government



Both tendencies, the lower number of allocations in relation to demand and access to rented housing, show a situation of inequality resulting from the immigrant collective’s not being considered as a target group in housing questions. The data show a clear increase of foreigners registered with Etxebide, which supposes greater access of this collective to public housing policies. However, demand and allocation continue to be imbalanced. The low average economic incomes of this collective, together with economic criteria for access to ownership of public housing (more lax than those of the free market, but equally high) and financial discrimination7 exclude a large part of the foreign population from promotions of public housing ownership, and they principally gain access to rented homes. This is a significant fact if we consider that much less of this type of home is constructed, 30% of homes built are for rent against 70% for ownership. 7. Conclusions The purpose of this paper has been to study access by the foreign population to social housing in the Spanish state. To this end we have focused on the case study of the Basque Country, an Autonomous Community with one of the most developed public housing policies in the state. One of the peculiarities of the housing policy in the Spanish state is its decentralized character, where each of the Autonomous Communities has the competency to develop its own policy in a framework established by the general legal framework. The management of the Basque public housing policy is done through Etxebide, the Basque Housing Service, the body that centralizes the demand for social housing and manages the allocation of a large part of social housings. In the Basque case it is possible to observe a clear access by the foreign population to the public housing policy. There is an over-representation of foreigners on the application list. While this collective is not considered a target group, its socioeconomic situation makes it a collective in need of public housing. Besides, family incomes show that the majority can only gain access to rented homes, due to low incomes that are not sufficient to obtain a mortgage and meet the access conditions for ownership of a public home. In recent years, there has been a change in the demand of the native population, the percentage that opts to rent has increased. There has therefore been an increase in the pressure of demand for rented homes. At the same time, less of this type of social housing is built and its development is more difficult. There is thus an important imbalance between the type of offer and the type of demand for social housing, which reduces the efficacy of the housing policy in achieving its aims. In the case of the foreign population the situation is worsening as the majority of foreign applicants can only opt for rented housing. With respect to the allocations of public housing, foreigners represent 22% of the demand for public housing against 77.6% by nationals; however, only 10.1% of final allocations are made to foreigners. Therefore, we can draw the conclusion that public housing policy is not being effective in guaranteeing access to homes and decent housing conditions for the foreign population.

7 We are referring to the discrimination mentioned by several authors in the immigrant collective’s access to a mortgage



Public housing could be a mechanism of social equalization because of its regulated characteristics in counterposition to the problems of gaining access to a home on the free market due to the price of housing and situations of discrimination. However, several of its virtues are annulled by the initial economic and legal conditions. The establishment of economic limits for gaining access to home ownership, as well as the need for a work contract and registration of residency in a town, generate some of the barriers faced by the immigrant collective, which is characterized by informal labor and low salaries and in some cases an irregular legal situation. In summary, the access of the foreign population to the social housing system through their inscription as applicants and the increase in allocations are two positive aspects. However, what is needed is a major revision of the offer of social housing that is centered exclusively on social renting, thus matching the more advanced social housing policy of Europe. In spite of the persistence of the culture of ownership, the data show a significant change and a sharp increase in the demand for rented homes. Efforts should therefore be focused on ending the imbalance between the type of demand and the current type of offer. Finally, it is necessary to make changes in the access requirements that generate situations of inequality and discrimination for the foreign population.



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migrants and social housing in spain: the case of the basque country

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