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.