MADRD (AP) — Spain's government on Tuesday approved a sweeping plan to alleviate the country's housing problem, one of Prime Minister Pedro Sánchez ’s main political vulnerabilities ahead of elections next year.
Rising rental and housing costs are pricing many Spaniards out of the market, despite a recent economic boom. Incomes have failed to keep up. Analysts say tourism and population growth in cities driven by immigration have further strained supply.
The new plan, worth 7 billion euros ($8.23 billion), triples government investment in public housing over the next four years. It ensures that subsidized housing cannot be reclassified after a few years. It also includes help for young renters and home buyers.
“It is a significant step forward. For the first time in decades, there is a serious budgetary commitment,” said Raluca Budian, associate director of the Observatory for Decent Housing at the Barcelona-based Esade business school.
About 40% of the money will be earmarked for growing the public housing supply, which Spain lacks compared to the European average, while 30% will be set aside for property renovations, the government said. That will include funds for making homes more energy-efficient and building in depopulated parts of the country.
The rest will go toward subsidies, with a focus on young people.
“The public is demanding an agreement to address the main problem currently affecting them,” Housing Minister Isabel Rodríguez said Tuesday. Housing routinely comes up as Spaniards' top concern, according to state pollster CIS.
Housing costs in Spain rose nearly 13% year-on-year at the end of 2025, according EU statistics agency Eurostat.
Spain ranks near the bottom of Organization for Economic Co-operation and Development countries with public housing for rent, with under 2% of available supply. The OECD average is 7%. In France, it is 14%, Britain 16% and the Netherlands 34%.
In the past, Spain built housing with public funds that later passed into private ownership. Once they were sold, they disappeared from the public housing stock.
Associated Press journalist Joseph Wilson contributed from Barcelona.
This version corrects the location of the Escade school to Barcelona-based.
FILE - People gather during a demonstration to protest high housing costs in Barcelona, Spain, April 5, 2025. (AP Photo/Emilio Morenatti, File)
NEW YORK (AP) — U.S. stocks are wavering Tuesday as Wall Street weighs the latest round of profit reports from big companies with the lingering risks from the ongoing war between the U.S. and Iran.
UnitedHealth Group and other big companies showed they’re making even bigger profits than analysts expected. Oil prices, meanwhile, remained relatively stable as optimism seems to be sticking in financial markets that the United States and Iran will avoid a worst-case scenario for the economy, even with their war ongoing.
The S&P 500 fell 0.3%, coming off just its second drop in 14 days, and is hovering below its all-time high. The Dow Jones Industrial Average was down 85 points, or 0.2%, as of 12:39 p.m. Eastern time, and the Nasdaq composite was down 0.2%.
UnitedHealth helped lead the market with a jump of 8.2% after reporting stronger profit and revenue for the beginning of the year than analysts expected. It also raised its forecast for profit over the full year of 2026.
That’s big because stock prices tend to follow the path of corporate profits over the long term. It’s a double-plus for investors when companies not only top earnings estimates but also forecast even better growth ahead.
Quest Diagnostics rose 5.1% after it likewise joined the fattening list of companies topping expectations for profit and revenue during the latest quarter. It also raised its forecast for profit for the full year.
They helped offset an 10.9% drop for Tractor Supply, whose profit and revenue for the latest quarter fell short of expectations.
Other signals are also indicating the U.S. economy may be doing OK despite sharp up-and-down swings for oil prices because of the war with Iran. A report on Tuesday morning showed that U.S. retailers made more money in March, the first full month of the war, than analysts expected.
Growth was even relatively stable for retail sales when not including those from gasoline stations.
“It’s become cliched to say that the economic hit will depend on the duration of the Middle East conflict, but that cliché does ring true,” according to Brian Jacobsen, chief economic strategist at Annex Wealth Management.
The price for a barrel of Brent crude oil, the international standard, rose 2.8% to $98.15 ahead of Wednesday's scheduled expiration for a U.S.-Iran ceasefire agreement. Both sides are continuing to talk tough, but hope remains after both have signaled they will hold a new round of ceasefire talks in Pakistan.
Much of the tension in financial markets has focused on what will happen to the Strait of Hormuz, a narrow waterway off Iran’s coast that oil tankers use to exit the Persian Gulf. A long-term closure would keep crude oil pent up in the gulf and away from customers worldwide.
The price for a barrel of Brent oil has gone from roughly $70 before the war to $119 at times as worries have risen and fallen about a long-term closure for the strait.
On Wall Street, Apple fell 2.8% after Tim Cook said he’ll step down as CEO on Sept. 1 and become the iPhone maker’s executive chairman. He’s handing control over to John Ternus, a company veteran who rose through Apple's hardware engineering ranks.
Amazon rose 1.6% after Anthropic said it signed a new agreement and is committing more than $100 billion over the next 10 years to AWS technologies to train and run its Claude chatbot.
In stock markets abroad, indexes were lower in Europe following a stronger finish in Asia. South Korea’s Kospi rose 2.7% for one of the world’s biggest moves.
In the bond market, Treasury yields gained ground. The yield on the 10-year Treasury rose to 4.3% from 4.26% late Monday.
Kevin Warsh, President Donald Trump's nominee to chair the Federal Reserve, appeared on Capitol Hill Tuesday. He's facing a tightrope walk, as investors want to see if he would maintain the Fed's independence from political meddling. During the hearing, he pledged to fight inflation even though Trump has been pushing hard for lower interest rates. Higher inflation typically leads the Fed to raise rates, or at least keep them unchanged, rather than cut them.
AP Business Writers Matt Ott and Elaine Kurtenbach contributed to this report.
Specialist James Denaro works at his post on the floor of the New York Stock Exchange, Monday, April 20, 2026. (AP Photo/Richard Drew)
A dealer walks past the screen showing the foreign exchange rate between U.S. dollar and South Korean won at a dealing room of Hana Bank in Seoul, South Korea, Tuesday, April 21, 2026. (AP Photo/Lee Jin-man)
A dealer walks past the screens showing the Korea Composite Stock Price Index (KOSPI) and the foreign exchange rate between U.S. dollar and South Korean won at a dealing room of Hana Bank in Seoul, South Korea, Tuesday, April 21, 2026. (AP Photo/Lee Jin-man)
A dealer watches computer monitors at a dealing room of Hana Bank in Seoul, South Korea, Tuesday, April 21, 2026. (AP Photo/Lee Jin-man)
A dealer stands near the screens showing the foreign exchange rates at a dealing room of Hana Bank in Seoul, South Korea, Tuesday, April 21, 2026. (AP Photo/Lee Jin-man)
A dealer walks past the screens showing the foreign exchange rate between U.S. dollar and South Korean won at a dealing room of Hana Bank in Seoul, South Korea, Tuesday, April 21, 2026. (AP Photo/Lee Jin-man)
Trader Michael Milano, left, works on the floor of the New York Stock Exchange, Monday, April 20, 2026. (AP Photo/Richard Drew)
