The Outward Spiral: Housing Prices and Suburban Expansion in the Region of Madrid

Abstract

Historic highs in Madrid’s housing prices are driving residents outward, expanding migration flows into increasingly distant metropolitan rings and accelerating the conversion of land to residential use. This process is reshaping suburban growth patterns across the region and transforming how peripheral municipalities absorb new residential pressures. This thesis examines the suburbanization patterns emerging across the Community of Madrid, analysing how the region is absorbing these influxes of demand and the effects on both rental and purchase housing prices across metropolitan rings. Drawing on rich quantitative data from Idealista, the largest housing listing platform in Spain, the research identifies spatial price patterns and their relationship with peripheral urban expansion. Methodologically, the analysis combines econometric and spatial techniques, triangulated through a zoom-in based on two case studies. Through these case studies, the research further details the policies shaping new urbanization projects and evaluates their effectiveness in containing price increases, offering insights into how peripheral growth can be better managed to address the region’s housing crisis.