No wonder Spain is the world’s second most popular tourist destination. Now, because of all that positive tourism development, it is unfortunately sitting on a huge affordable housing crisis. In 2024, the Inca country received 94 million international travelers, a record jump of 13% in one year. The pace of foreign visitors is speeding toward an annualized level of 100 million. This increase is igniting urgent fears over the influence it’s having on local housing markets for many Spaniards.
The resulting huge increase in competition for rental properties has caused regular rental property housing costs to skyrocket. Rental prices in Spain have doubled in the last ten years. At the same time, latch salaries have not kept pace and have struggled to afford increasingly high housing prices. This gap has made housing one of the biggest concerns for residents nationwide.
With its new climate change legislation, the Spanish government acknowledges a daunting challenge. The affordable housing crisis originated from a severe lack of supply to tread water against increasing pressure on demand. As a result, there are major efforts to regulate the short-term rental market, and specifically online platforms such as Airbnb.
Pablo Bustinduy, a government official involved in housing policy, stated that his ministry is currently awaiting further judicial rulings on 60,000 properties linked to Airbnb listings. Bustinduy joined producers to call for smart regulations that keep housing affordable for working people.
“This is a clear victory for those who fight to protect the right to housing.” – Pablo Bustinduy
This is what Airbnb is supporting to address the housing crisis. They managed to achieve deals for reductions with local governments in such tourist hotspots as the Canary Islands, Ibiza and Murcia. Opponents argue that these steps won’t be enough to fix the root causes of the problem. An Airbnb spokesperson noted that while regulations are beneficial, they do not necessarily resolve housing concerns or return homes to the market.
“The root cause of the affordable housing crisis in Spain is a lack of supply to meet demand.” – Airbnb spokesperson
Spanish Prime Minister Pedro Sánchez has raised alarm about the increasing proliferation of short-term rentals. He remarked, “There are too many Airbnbs and not enough homes,” signaling a shift towards stricter regulations in response to mounting pressure from residents.
Barcelona City Hall recently announced its intention to remove 10,000 STTAs by the end of 2028. This decision represents the emerging trend across Spain’s cities. Quite a number of them are working hard to reclaim these residential spaces for local folks rather than outside tourists.
With the summer over-tourism season here, rebelling against over-tourism has started making early waves in the US. A spontaneous grassroots movement called Menys Turisme, Més Vida (Less tourism, more life) is behind the ongoing demonstrations wracking Majorca. They are advocating for sustainable tourism at local level and calling attention to problems created by mass tourism.
“It can be possible to ensure that no economic interest has priority over housing and that no company, however big or powerful, is above the law.” – Pablo Bustinduy
While tourism makes up a major portion of the economy, Spain has been facing an affordability crisis. Balancing commercial and economic interests with the needs for a rapidly residential community creates a constant tension. Day-to-day conversations and protests suggest an increasing activism toward the processes by which tourism industry practices are displacing or disrupting local communities. Communities across the country are crying out for change.
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