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When work no longer protects against sleeping outdoors: Palma at a social crossroads

Why Housing in Palma Has Become Hard to Afford

Limited supply, holiday rentals and rising costs are making long-term housing harder to afford in Palma.

Published: April 21, 2026
When work no longer protects against sleeping outdoors: Palma at a social crossroads

Answer

What is causing housing to become so expensive in Mallorca, especially in Palma?

Several pressures are pushing prices up in Mallorca, especially in Palma: limited long-term rental supply, second homes, holiday rentals and rising living costs. When available rooms are already expensive, people on low or irregular incomes are the first to be excluded. The result is a housing market that is increasingly out of reach for many residents.

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