Ten years ago, Barcelona introduced strict rules to limit short-term rentals like those on Airbnb. City leaders said the goal was to tackle two growing problems: overtourism and housing shortages.
Advocates applauded the move, hoping it would ease pressure on residents and neighborhoods.
However, the city still faces housing and tourism challenges a decade later. Data shows these issues have only grown worse. Meanwhile, new concerns have emerged about the policy’s broader impacts.
Barcelona’s housing crisis has worsened over the last ten years. Spain has built fewer homes during this period than ever since 1970. Yet, demand for housing continues to rise, with new households forming three times faster than new homes are built.
Vacant homes also remain a significant issue. In Barcelona, the number of vacant dwellings outpaces short-term rentals by eight to one. Despite this, policies to address these empty properties have yet to be prioritized.
Housing affordability has reached a breaking point. Rents in Barcelona have increased by 70% since the clampdown on short-term rentals began, and home prices have risen by 60%, making it more challenging than ever for locals to find affordable places to live.
These rising costs leave many questioning the effectiveness of the city’s approach. Some argue that focusing solely on limiting short-term rentals has ignored deeper issues. For example, stagnant home construction and many unused properties limit housing availability.
Tourism, another target of the regulations, has also seen limited improvements. Officials hoped reducing short-term rentals would lessen the strain of overtourism.
Airbnb wants Barcelona's mayor to rethink a widening crackdown on short-term rentals. The holiday rental giant argued it only benefits the hotel sector, and doesn't address overtourism or a housing crisis https://t.co/Ts5WNcPqS2 pic.twitter.com/YE3adaHt7P
— Reuters (@Reuters) November 18, 2024
Yet, 75% of visitors stay in hotels or hostels, not short-term rentals.
Barcelona’s Old Town remains one of the hardest-hit areas for overtourism. Hotel beds in this district outnumber short-term rental beds six to one.
Over 22,000 hotel beds are packed into the Old Town, compared to just over 3,200 short-term rental units.
The hotel industry has expanded significantly rather than scaling back. Recently, local governments across Spain have approved more than 800 new hotels.
These latest developments will add 75,000 hotel rooms, nearly 90% of which are popular tourist areas.
Barcelona plans to add 5,000 new hotel rooms, even as city leaders push to eliminate more short-term rentals. Critics argue this approach shifts the burden of over-tourism to hotels without addressing the root problem.
Hotel prices have also surged to record levels. With fewer short-term rentals as competition, hotels have capitalized on their dominance. Over the past decade, average hotel room prices in Barcelona have increased by more than 60%.
This trend has raised concerns about accessibility for both tourists and residents. Visitors face higher accommodation costs, while locals need help with increased living expenses.
Many believe these outcomes benefit large hotel chains at the expense of regular citizens.
Airbnb has resisted the city’s policies, citing their limited impact on housing and tourism. Since 2018, the platform has removed over 7,000 listings to comply with regulations.
However, company officials argue that short-term rentals are not the leading cause of Barcelona’s challenges.
Theo Yedinsky, Airbnb’s Vice President of Public Policy, criticized the clampdown. He said the hotel industry is the only winner from these policies. Meanwhile, residents and local hosts face mounting difficulties.
Airbnb claims it wants to work with city leaders to find solutions. The company points to successful models in other cities, such as New York, where policies balance the needs of all stakeholders.
In Barcelona, local hosts have even challenged the regulations in court, calling for fairer rules.
Many experts agree that the city’s housing and tourism problems require a broader strategy. Addressing vacant homes could significantly increase the housing supply, and encouraging new home construction could help meet the rising demand.
At the same time, better tourism management could ease the strain on popular neighborhoods. This approach could involve diversifying accommodation options and limiting the unchecked expansion of hotels.
The clampdown on short-term rentals has had clear consequences. Yet, it has not achieved its intended goals. Housing remains scarce and expensive.
Tourism continues to overwhelm critical areas, with hotels playing a more significant role than ever before.
Barcelona is at a crossroads regarding these outcomes. Leaders must adjust their policies to address these more profound challenges or continue with the current approach.