The story of residential transformation in Vallecas, Madrid, exemplifies the evolving landscape of housing in the city, marked by rising rents, changing demographics, and the ongoing housing crisis.

The area has seen significant changes since the construction of a modest two-story building at number 9, Pedro Escudero Street, which dates back to 1964. Previously characterized by low-rise houses and agricultural land, Vallecas has experienced urban development and economic shifts over the decades.

Initially, the community was home to working-class families, with small businesses, such as a mechanical workshop and a printing shop, serving the local population.

Luis González, who operated the mechanical workshop for 36 years, recalls a time when the neighborhood was defined by its labor-centric identity.

However, as the area has gentrified, the economic landscape has transformed.

The pandemic prompted a shift in real estate dynamics, with speculative investment increasingly focusing on the southern districts of Madrid, including Vallecas.

Real estate investor Carlos Scafati purchased the property in 2018, redeveloping it to capitalize on the demand for housing.

The original workshop was converted into a rental unit, while the upstairs residential space was restructured into multiple rooms, facilitating shared living.

Scafati now lists these accommodations for approximately €750 each, drawing a varied clientele that includes gig economy workers and undocumented immigrants.

This strategy aligns with a wider trend of landlords adapting to market pressures, often circumventing rental laws.

Over the past decade, rental prices in Vallecas have surged dramatically, with a standard 70-square-meter apartment now nearing €1,000.

The increase in short-term rentals and transient housing arrangements has raised systemic concerns about the impact on local communities and small businesses.

In 2022 alone, five shops closed daily, leading to the conversion of over 1,800 commercial units into residential spaces.

The area’s transformation reflects not only economic pressures but also social challenges, highlighted by the emergence of housing activism.

Recently, the vacant property at Pedro Escudero Street saw a new occupant, Aitor, who entered the space supported by the local anti-eviction platform, PAH.

The organization advocates for housing rights, underscoring the irony of vacant homes amid high demand.

This incident has drawn attention to the ongoing crisis, where upticks in forced evictions and housing speculation often lead to confrontations between occupiers and landlords.

Reports indicate that approximately 260,000 homes remain unoccupied in the Community of Madrid, exacerbating the demand for affordable housing.

The ongoing struggle for housing in Vallecas, as exemplified by the layered histories of its buildings and the lives they accommodate, underscores the complexity of urban development in contemporary Madrid.

There remains a dichotomy between rising property values and the needs of a diverse population affected by economic disparities and social change.