Santa Cruz de Tenerife Shifts Housing Strategy to Tackle Severe Shortage

Santa Cruz de Tenerife is at a crossroads as it struggles with a severe shortage of housing. To address this, the City Council is shifting its plans for a 60-home public housing project, moving it from Ofra to the La Gallega neighborhood. This change is designed to make better use of city-owned land and secure five million euros in European funding. The project is set to go to tender this year, with construction expected to start in 2027.

The local construction sector is facing significant hurdles, including a lack of skilled labor and low interest from companies in public contracts. To overcome these delays, the City Council, led by Belén Mesa, is looking at new solutions such as land swaps, housing cooperatives, and modular construction. These efforts are part of a broader goal to add 343 new homes to the city’s stock, including ongoing projects in Cuevas Blancas, María Jiménez, and Valleseco.

Amid this housing crisis, the City Council is prepared to use special legal powers to convert land currently designated for public facilities into residential areas if more building plots are needed. At the same time, the city is moving forward with urban renewal projects, such as the 5.1-million-euro renovation of 189 homes in Añaza, funded by the EU’s Next Generation program.

Under Mayor José Manuel Bermúdez, the city is also seeking additional state funding to help buy completed developments or renovate older buildings. By diversifying its funding and exploring new building methods, the administration hopes to improve energy efficiency and accessibility while increasing the supply of affordable homes in a market where demand continues to outpace availability.