The first decree, which aimed to suspend evictions of vulnerable tenants until 2030 and restrict vulture fund purchases of residential properties, was defeated 178 to 172. The second, which would have made residential leases automatically renewable, lost 184 to 166. The Catalan separatist party Junts, along with the center-right Popular Party and far-right Vox, voted against both measures.

Sánchez made a final appeal to lawmakers during a five-hour debate, urging them to “do the right thing, or history will judge you.” His plea fell on deaf ears. Outside parliament, protesters jeered the vote, and those in the public gallery shouted “Vulture funds govern the congress!”

The rejected measures were part of the government’s response to a national uproar sparked by the televised eviction of 87-year-old Maricarmen Abascal in Madrid. Her case has become a symbol of the housing crisis, where many are priced out of buying homes and face an unaffordable rental market. Abascal’s landlord eventually allowed her to return to her apartment after intense public and political pressure.

Protests continued across Spain on Saturday, with demonstrators calling for a general strike. In Madrid, organizers claimed 500,000 people marched, while government officials estimated 70,000. In Valencia, clashes erupted between protesters and police, with officers using rubber bullets and tear gas. About 30 protesters briefly entered the City of Arts and Sciences before being removed.

Protester David, speaking to RTVE, said, “We’re not here for pleasure or comfort. We’re here out of conviction.” Marcos Sainz, a 26-year-old librarian, said he used to pay €900 a month for a two-bedroom apartment, but now a one-bedroom unit often costs €1,000 — half the median monthly salary in Madrid.

The Madrid Tenants’ Union said the government’s defeat in parliament “exacerbates the housing crisis which is costing the working class their lives.” Valeria Racu, a spokesperson for the union, said the protests showed “a new energy that we haven’t seen in a long time.”

Sánchez’s government, which formed a coalition with the far-left Sumar alliance in 2023, lacks a parliamentary majority. The rejection of the housing measures has intensified speculation that Sánchez may call an early election. The Popular Party’s leader, Alberto Núñez Feijoo, urged Sánchez to “call elections as soon as possible,” claiming he has the support of “neither the streets nor parliament.”

The average rent in Spain has nearly doubled in the past decade. According to real estate platform Idealista, the average price per square meter has risen from €8.20 in 2016 to €15.10 in 2026.