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When Doors Are Bricked Up: Reina, Luna and the Escalating Housing Crisis in Palma

How Short-Term Rentals Are Affecting Housing in Mallorca

Short-term rentals are shrinking Mallorca’s long-term housing market and putting pressure on rents.

Published: April 21, 2026
When Doors Are Bricked Up: Reina, Luna and the Escalating Housing Crisis in Palma

Answer

How do short-term rentals affect housing in Mallorca?

Short-term rentals reduce the number of homes available for long-term residents and can push up prices across Mallorca. When apartments move into the holiday market, people who work on the island all year often struggle to find stable leases. The effect is especially visible in places with high demand and limited supply.

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