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When Paradise Becomes Unaffordable

Why Mallorca's housing is becoming unaffordable for locals

Explains the factors behind Mallorca's rising living costs, the role of short-term rentals, and potential solutions for locals.

Published: October 22, 2026
When Paradise Becomes Unaffordable

Answer

Why is housing in Mallorca becoming unaffordable for locals?

Rising costs come from a mix of market power, investment strategies, and a significant supply of short-term rentals that drain the housing stock. At the same time, operating costs for local businesses are rising, and wages don’t always keep pace. The result is that families, workers, and long-term residents feel the squeeze, even as tourism remains central to the island’s economy.

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