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Rental prices hit 1,200 euros for a room in Palma: "It’s sad how having a job no longer guarantees a roof over your head"

Faced with soaring rents in Palma, José Luis and his wife have chosen to live in a caravan while searching for affordable housing in the Balearics

Rising rents in Palma force some residents to live in caravans, turning parking lots into makeshift neighborhoods as affordable housing remains out of reach | Photo: P. Pellicer

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Palma is witnessing a growing number of people adopting caravans as their main residence, reflecting a wider housing challenge across the Balearics. The car park adjacent to the Monasterio de la Real has become a focal point for this phenomenon, where caravans line up for both recreational use and permanent living.

Last Friday morning, around ten caravans were parked in the area. Among their users, experiences vary. A neighbour from Uruguay was preparing his caravan for a weekend trip. "There are people living here, but most of us use them for weekend getaways," he said, clarifying that he does not reside in the vehicle but rather views it as leisure accommodation.

Just a few metres away, a different situation unfolds. José Luis (a pseudonym), 43, recently started living in a friend’s caravan alongside his wife. Employed in the hospitality sector as a fixed-term worker with unpredictable hours, he shares that his wife is actively seeking employment. They had been searching for rental accommodation repeatedly but were priced out. "Rent prices are through the roof. We were quoted €1,200 for the main room in a shared flat," he explained. With only one steady income, such prices made signing any contract impossible.

An increasingly common sight in Palma: people turning caravans into their homes. Photo: P. Pellicer

"I live here because we simply can't afford a home. It’s sad how having a job no longer guarantees a roof over your head," José Luis added.

The couple’s choice was made out of necessity rather than preference. "No one wants to live in a caravan, but we're at a breaking point," he remarked. They've lived there a few months now, trying to save money while continuing their search for something within budget. "If we could rent something at a reasonable price, we wouldn’t be here."

Their daily life is quiet during daylight hours, with activity picking up mostly at night when these caravans become sleeping quarters. "Today it’s us, but tomorrow others might find themselves in the same position," José Luis reflected, highlighting the ongoing housing emergency in Mallorca.

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