Madrid's housing market is highly dynamic and characterized by strong demand. The majority of residents in the city center live in apartments (*pisos*), which range from historic, Juliet-balconied units in the center to modern complexes in the north.
Housing affordability is a significant and growing challenge. Rental prices have risen sharply over the last decade, driven by urban migration, a lack of new central supply, and the proliferation of short-term tourist rentals.
While the urban core is dominated by mid-rise apartment buildings, the outer suburbs and municipalities (such as Pozuelo de Alarcón and Las Rozas) offer single-family homes, townhouses (*chalets*), and gated communities. The city continues to push for new urban developments (like Madrid Nuevo Norte) to expand the housing supply.