The affordable housing crisis in large urban areas around the world has become a recurring theme in recent years. Housing prices have risen at a much faster rate than wages in many cities, which has made access to property difficult, especially for young people and families with medium and low incomes. This situation has generated greater demand in the rental market, also causing an increase in rents. The affordable housing problem not only affects city centers such as Madrid or Barcelona, but also peripheral areas, which until recently were considered more accessible. The lack of sufficient supply, together with growing demand, has generated an unbalanced market where prices do not adjust to the economic reality of the majority. Policies aimed at public housing promotion or regulation of the sector have proven to be inefficient. In addition, the challenges facing the residential real estate market are not limited to price fluctuations. Sustainability and energy efficiency, gentrification, digitalisation of the sector, ageing of the population and the effects of climate change form a complex framework that requires integrated solutions. Addressing these challenges in isolation can lead to short-term responses. To ensure a balanced and sustainable market, a global approach is needed that takes into account all these variables. Thus, an effective solution to the problem of the lack of affordable housing must go beyond the search for land in central areas. A well-designed metropolitan policy must focus on expanding and improving connectivity between peripheral areas and urban centres through a comprehensive and efficient public transport network. This will increase the supply of affordable housing and reduce pressure on the real estate market in the most sought-after areas. At the same time, the rehabilitation of buildings is not only an environmental necessity, but also an opportunity to increase the supply of quality housing. Sustainability in the real estate sector is not limited to the construction of new buildings with ecological criteria, but also to the rehabilitation of existing ones to improve their energy efficiency. The European Union has indicated that buildings account for 40% of energy consumption and 36% of CO2 emissions on the continent. In Spain, rehabilitation initiatives have been limited, despite the incentives provided by European funds for energy rehabilitation. Lack of awareness and the perception of high initial costs have prevented their massive adoption. However, recent studies indicate that these investments are profitable for both owners and tenants. Since rehabilitation presents important economies of scale, it is crucial to implement policies that promote it at metropolitan and national level. In addition, the private sector must encourage the creation of companies and consortia of sufficient size to improve their efficiency and scope. Globally, climate change represents a growing risk for the real estate market, especially in coastal areas and areas vulnerable to natural disasters. Various studies suggest that rising sea levels and extreme weather events could significantly depreciate properties in these areas and increase the cost of insurance. This situation requires a re-evaluation of urban development areas and greater investment in resilient infrastructure. Adapting the real estate market to these new risks is essential to avoid economic losses and ensure people's safety.Gentrification is another phenomenon that deeply impacts the real estate market in many cities. The revaluation of central neighbourhoods has displaced their original residents, most of whom have insufficient income to sustain the economic growth of urban centres. This dynamic is transforming the social fabric of these areas. In turn, the ageing of the population is another factor that is redefining the demand for housing in Spain. With an increasing life expectancy and a declining birth rate, the proportion of older people is growing, and with it, the need for housing adapted to their needs.Massive rehabilitation of buildings and new construction projects, combined with significant investment in transport, can mitigate the negative effects of gentrification and demographic changes. Improving transportation networks allows for greater connectivity between peripheral neighborhoods, transforming them into urban centers, facilitating access to job opportunities and services. When transportation is improved in the periphery of a city, housing prices in the center tend to decrease or at least slow their growth. Studies show that, in general terms, this decrease can vary between 1% and 5% depending on the magnitude of the improvement in transportation and the structure of the local real estate market. So, why not focus on transportation when addressing real estate market challenges? Generally speaking, it is essential that housing changes within a metropolitan area are fast and accessible, avoiding increases in costs and travel times. High flexibility in the housing market, together with low transaction and mobility costs, would facilitate the adjustment of supply and demand, improving market efficiency and allowing people to easily move where there are more opportunities. In conclusion, the residential real estate market faces multiple challenges that, although complex, can be addressed with a holistic approach. Integrating transport, rehabilitation, sustainability and adaptation to climate change into housing policies is key to ensuring more balanced, fair and resilient cities. Collaboration between the public and private sectors and civil society is essential to develop solutions that not only respond to current demands, but also anticipate the future challenges of a constantly evolving sector. Carles Vergara, professor at IESE.