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

Why Mallorca’s Housing Shortage Is So Hard to Solve

Mallorca’s housing shortage is linked to slow permits, high costs, short-term rentals and too few affordable homes.

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

Answer

Why is Mallorca facing such a housing shortage?

The shortage is driven by several factors at once: slow planning procedures, high construction costs, limited incentives for affordable housing, and homes being taken out of the long-term rental market. Short-term rentals and second homes also reduce the number of properties available to residents. The result is rising pressure on local neighborhoods, especially in places like Palma.

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