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When the Neighborhood Gives Way to the Market: Paths Out of Mallorca's Housing Shortage

How Short-Term Rentals Affect Mallorca’s Housing Market

Short-term rentals can reduce long-term housing supply in Mallorca, especially in high-demand neighborhoods.

Published: April 22, 2026
When the Neighborhood Gives Way to the Market: Paths Out of Mallorca's Housing Shortage

Answer

What role do short-term rentals play in Mallorca’s housing problem?

Short-term rentals can remove homes from the long-term market, which tightens supply for residents. In Mallorca, that effect is especially visible in high-demand areas where apartments are more profitable for tourist use than for year-round leases. It is one of the reasons housing pressure has become so intense in many neighborhoods.

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