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Housing shortage in Mallorca: Why even retirees are now leaving the island – and what can help

Why Mallorca’s Housing Market Has Become So Expensive

High demand, holiday rentals and investment buying are driving Mallorca’s housing prices beyond reach for many residents.

Published: April 22, 2026
Housing shortage in Mallorca: Why even retirees are now leaving the island – and what can help

Answer

What makes Mallorca’s housing market so expensive for local residents?

Several forces are pushing prices up in Mallorca, including strong demand, holiday rentals, and investment buying. That leaves fewer homes available for people who want to live on the island year-round. The result is a market that works well for buyers with high purchasing power, but not for many local families or retirees.

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