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When Paradise Becomes Unaffordable

Short-term rentals and Mallorca's housing balance

Discusses how short-term rental demand affects Mallorca's housing stock and affordability.

Published: October 22, 2026
When Paradise Becomes Unaffordable

Answer

Why are short-term rentals a big part of the problem for Mallorca's housing market?

They shrink the pool of homes available for long-term residents and push rents higher in affected neighborhoods. A clearer licensing system and incentives to convert units into permanent housing can help restore balance.

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