Short-Term Rentals Surge Despite Housing Crisis in Spain

Despite efforts to curb overtourism, Spain is witnessing a dramatic surge in short-term tourist accommodations, which have increased by roughly 25% over the past two years. Rental supply in cities like Madrid, Málaga, and Barcelona has expanded far more quickly than hotel capacity—which grew only 2% in the same time frame—according to Exceltur's tourism lobby statistics reported by Reuters.

This influx of short-term rentals is squeezing the long-term rental market, as international tourists often generate higher per-night returns than residential tenants, leading some landlords to shift their focus. Madrid saw a 49% increase in tourist listings, Málaga surged by 36%, and Barcelona rose by 26%. The national housing deficit now stands near 450,000 homes, as platforms like Airbnb are under pressure to deactivate over 65,000 unlicensed listings.

This trend is directly reshaping Spain’s rental landscape: fewer long-term rental units means tighter supply and increasing pressure on rent prices. In response, some regions—such as Barcelona and parts of the Canary Islands—have moved to ban new tourist rental permits, while others struggle with weak enforcement of rental regulations.

For landlords and investors, this development signals both risk and opportunity. The allure of short-term rental returns is strong, but it comes with regulatory uncertainty and social backlash. For those in long-term rental markets, recognizing the shifting dynamics can help in strategic planning—whether through conversion, diversification, or advocacy for balanced housing policy.
https://www.reuters.com/world/spain-short-term-rentals-surge-despite-bid-rein-overtourism-2025-06-02/