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Why Living on the Balearic Islands Will Be Noticeably More Expensive in 2026 — A Reality Check

How Holiday Rentals Affect Rents in Mallorca

Short-term rentals reduce long-term housing supply in Mallorca and add pressure to already rising rents.

Published: April 22, 2026
Why Living on the Balearic Islands Will Be Noticeably More Expensive in 2026 — A Reality Check

Answer

Why do short-term rentals push up rents in Mallorca?

When more homes are used for holiday lets or investment, fewer are available for people who need a long-term place to live. That reduces supply and tends to push rents up, especially in areas with strong tourist demand. In Mallorca, this effect is one of the main reasons local residents feel squeezed out of the housing market.

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