"There's a genuine housing emergency." "There's a huge gap between salaries and the cost of living." The first quote is from economist Pau A. Monserrat, a member of the Balearics Economic and Social Council and a professor at the University of the Balearic Islands. The second comes from Laura Pérez, a member of the 'Mallorca no es ven' platform (Mallorca is not for sale). These are just two comments regarding one of the most pressing problems in the Balearics - access to housing.
Monserrat stresses that "the demand for housing, both for purchase and rent, has skyrocketed in Mallorca, while the supply has lagged far behind". From the supply side, Sandra Verger of the builders association, says: "Mallorca continues to suffer a housing emergency with a significant imbalance between a scarce supply and a very high demand for housing."
"Most Mallorcans are experiencing a critical moment, from the most vulnerable to those who earn €2,000 a month but still cannot afford to rent or buy a home." These are the words of the spokesperson for the Platform of People Affected by Mortgages, Àngela Pons, and are echoed by Laura Pérez: "The island is experiencing a housing crisis with extremely high prices, a very limited supply, and a serious mismatch between what people earn and the cost of living."
Estate agents and developers say much the same thing. José Miguel Artieda, president of the API association of estate agents: "In the Balearics, we have a continuous rise in prices; we are at national record highs. Furthermore, there is a scarce and low-quality housing stock available for residents - outdated properties or properties in undesirable areas - coupled with high demand." Óscar Carreras of the Proinba developers association: "House prices, both new and used, are under significant pressure in the Balearics due to the lack of supply."
The housing emergency Pau Monserrat refers to is largely due to insufficient public planning. "The government has not developed a stock of affordable homes for rent for those groups whose income prevents them from accessing the open market. Nor has the open market maintained a construction pace commensurate with the needs of new households. In 2024, the Balearic Islands generated almost 10,000 new households, but fewer than 3,000 homes were delivered.
"This structural lack of supply is compounded by several factors that intensify the pressure. One of them is the perceived legal uncertainty among property owners, which discourages them from putting their homes on the rental market. There are also bureaucratic hurdles and lengthy licensing and planning processes, which increase the cost of development and hinder new projects.
"Mallorca's appeal as a tourist and residential destination generates a demand far exceeding the limited resources of an island territory. It's not just residents looking for housing; buyers from other European countries also seek it, representing around a third of sales. Then there is the demand from the thousands of workers who arrive each season to sustain the tourism economy. All of this fuels a chronic imbalance between supply and demand that explains the exorbitant prices we are currently experiencing."
Sandra Verger explains that "we have been building very little housing for many years, apartments in particular, which are the most affordable, and especially social housing, of which we haven't built any for years". "This coming year we will see an increase in the number of approved housing projects, but we are still far from the figures needed to meet demand."
José Miguel Artieda blames the housing emergency on "excessive population growth". "This is causing a depletion of the housing stock and an increase in demand that exceeds the supply. It could have been foreseen and certain measures could have been taken to safeguard access to decent and affordable housing for residents through the creation of public and subsidised housing. We had the clear example of Ibiza, which was desperately crying out for help before 2016, but it was seen more as a success story than as a warning sign for the other islands.
"There are three key dates. The first is 2006, when the housing bubble crisis began and housing prices rose by 70%. The second is 2016, when the economic recovery started, with a 90% price increase. The third is in 2020, when there was a quantum leap in the Balearic property market due to the search for homes with open spaces, the energy crisis, and the rise of remote working. There was a 50% price increase. This is unsustainable for the population.
"The main victims are young people under 30, who have reached adulthood during the price surge that began in 2016 and have not had the opportunity to consider buying an apartment, thus being forced to share housing with little prospect of a better future. Divorced people and single-parent families are also having a very hard time. And we cannot forget the elderly, who cannot obtain a mortgage to buy a home or a rental guarantee."
Monserrat agrees that these groups are suffering "particularly intensely" but adds that "market tension affects almost all profiles, such as newly arrived workers, essential for the functioning of the tourism and service sectors, who are faced with a draconian rental market." "Even the middle classes, who traditionally could buy and rent with relative ease, now encounter significant barriers due to prices that are rising much faster than wages."
Àngela Pons is more to the point. She blames a lack of political will and "a failure to enact laws that benefit citizens and instead favour speculators, who are buying up everything they can".