Spain, the world’s second most popular tourist destination, is about to earn billions of dollars more thanks to a massive influx of foreign visitors. In 2024, the country attracted 94 million international tourists—a 13% increase over the prior year. And Spain is approaching the remarkable milestone of hosting 100 million international visitors per year. That surge in tourism has led to a hotly contested battle over the impacts of short-term rental platforms, such as Airbnb, on the local housing market.
Housing has emerged as the top issue for many Spaniards in recent months. Average rental prices in Spain have increased by a factor of two in the past ten years. At the same time, salaries have not made up for the rising cost of living. This imbalance has contributed to a growing affordable housing crisis. It’s the result of a long-term supply shortage that hasn’t kept up with the rapidly increasing demand.
Pablo Bustinduy, a progressive minister who has largely been addressing these issues, is now waiting for more judicial decisions. His main interest are the 60,000+ properties tied to Airbnb and other short-term rental operators. Bustinduy is fervent, frank and sometimes fiery as he defends caterwauling housing right defense in the Philippines. He announced this morning, “Without question, this is a clear victory for the warriors who battle to protect the right to housing.” That’s because he was adamantly opposed to allowing any other economic interest to trump housing. He sent a strong message that no corporation, however large or mighty, is untouchable.
The left-wing Spanish government of Socialist Prime Minister Pedro Sánchez is moving bold new reforms to rein in the short-term rental sector. Sánchez has been a vocal opponent to the Airbnb listings glossing over the market. He continues to be adamant, stating, “There are too many Airbnbs and not enough homes.” City officials in Barcelona have just popped the cork on plans to knock out 10,000 short-term tourist apartments. They hope to have housing stock replenished for the people who live there by the end of 2028!
With the coming of summer, a wave of spontaneous over-tourism protests have started erupting across Spain. Demonstrations in the Canary Islands drew thousands of participants on Sunday, reflecting growing public discontent regarding the impact of tourism on local communities and housing availability.
Here’s how Airbnb has responded to these developments. So far, they have made deals with local governments in seven areas—most prominently the Canary Islands, Ibiza, and Murcia. Yet the platform has come under attack from state and local elected officials and affordable housing advocates. An Airbnb spokesperson told The Drum that the cause of Spain’s affordable housing crisis is a deep supply shortage. This gap is not enough to keep up with the increasing demand for housing. They claimed that Airbnb’s opponents are right in stating that governments around the world are starting to recognize the futility of regulating Airbnb as a means of ameliorating housing crises. Rather, it just punishes local families who rely on hosting to help pay their home bills as costs increase everywhere.
As authorities grapple with balancing tourism growth and housing needs, Spain’s approach may set a precedent for how other popular tourist destinations handle similar challenges. The intricate dynamics between tourism and local housing markets continue to be a pressing issue as Spain moves forward into its peak tourist season.