Valldemossa Tops the List: What Does the High Average Income Actually Mean?

Valldemossa at the top – but who does the prosperity apply to?

Walking through Valldemossa on a clear morning, the bell of the charterhouse just faded, the bakery bread still warm in your hands and the sun wetting the hairpin bends, the statistic almost seems plausible: in 2023 the municipality had the highest average net income in the Balearic Islands – roughly €22,100 per person per year. Yet the central question remains: does this average really say anything about the quality of life of the people who live and work here?

What lies behind the average

Averages are elegant numbers, but they can also smooth things over. In Valldemossa several factors come together that push the mean upward: affluent second-home owners, successful holiday rentals, property owners with rental income and those service providers who benefit from tourism. At the same time you see older neighbours with shopping bags in the side streets, craftsmen dragging their tools early in the morning, and restaurants that hum in peak season and fall quiet in winter. This mix creates a distorted picture – the average rises even though many households are not automatically better off. More information can be found in our article about Valldemossa in front — Per‑capita income 2023.

Sometimes structural effects are at play: a municipality with a few very wealthy households and many average incomes will get a high mean. Age structure, ownership patterns and seasonal employment also play a major role. A high average therefore says nothing about distributional fairness, about poverty at the lower end or about the stability of incomes throughout the year.

The less noticed aspects

Little discussed is the seasonal imbalance: many jobs tied to tourism and holiday rentals are not secured year‑round. In this respect the annual net income can be misleading if it is earned mainly during peak months. The role of second homes and renovation investments also often remains invisible in the statistics: owners who are only present part of the time contribute little to the local social fabric, but they push up property prices and the services available locally.

Added to this is the demographic development: young people move to cities with more job opportunities – often to Palma or to the mainland. Older residents with steady pensions remain, which can also influence averages. The consequences are gaps in the local labour market, vacant shops in side streets and a change in public space visible in stickers on lampposts or closed stores. Further interesting insights are offered by our article Palma in transition: Where incomes are skyrocketing.

Concrete challenges and brief approaches

Against this background the figures mean more to policymakers than a nice headline. They are a toolbox: for social planning, infrastructure and housing market management. Concrete measures could include:

1. Better indicators: In addition to the average, median income, poverty rates and seasonal income data should be published. This makes the distribution clearer.

2. Securing housing: Municipal support programs for locals, quotas for affordable housing in new developments and stricter regulation of holiday rentals could relieve pressure on the market.

3. Fiscal levers: Use revenues from the tourism tax more specifically for social projects, local supply and infrastructure – so that not only the statistic benefits but everyday life does too. Learn more about the effects of the tourism tax in our article on Food prices on Mallorca.

4. Promoting a year‑round economy: Create incentives for crafts, small manufacturers and cultural projects outside the season so that incomes become more stable.

A look on the ground — not just on paper

If you stroll along the plaza in Valldemossa on a Saturday, you notice the sound of different realities: tourists chatting, the hammering of craftsmen, the quieter conversation of older residents on a bench. This soundscape tells more than the bare number. Statistics are a snapshot; local politics and neighbourhood initiatives must continue the story.

The highest average income is news — but not a conclusive diagnosis. Anyone who truly wants Valldemossa to remain liveable for all ages and income groups should view the figures as a starting point: for targeted data collection, concrete action and the question of how to distribute prosperity more fairly. That sounds less romantic than a sunrise over the Sierra, but it is more important for the place’s future.