In 1994, the Balearics had almost 750,000 inhabitants and 415,401 homes. The population now exceeds 1.2 million, while the number of homes stands at 650,123. The population has increased by almost 70%, number of homes by 56%.
These rates of growth don't tell the whole story. At the start of the century and at the height of the housing bubble immediately prior to the financial crisis, the construction of 12,000 or more new homes was initiated in specific years. The crash, when it came, reduced this to 2,000 and lower. The absolute lowest years were those of the austerity Partido Popular government of José Ramón Bauzá from 2011 to 2015.
There has been a recovery since then, but at a far slower rate of growth than that of the population. The figures over thirty years disguise the fact that there was an almost total collapse in the building of affordable homes following the crash. For example, Spain's housing ministry data for the Balearics indicate that 9,446 affordable homes of some kind were built between 1994 and 2004. From 2015 to 2024 there were 741.
There were similar declines elsewhere in Spain, but these weren't as pronounced as in the Balearics. Sandra Verger of the Balearic Builders Association explains that housing plans once used to be developed through a collaborative process involving the Spanish Government and regional governments. These plans favoured the building of affordable homes. There were subsidies for construction and for purchase. Buyers also received non-refundable grants, which significantly reduced the price.
The crash halted the building of affordable homes, principally those of the VPO category. Verger adds that under the left governments from 2015 there was some building but that this was specifically social housing for highly vulnerable families. It was a good initiative, but insufficient. Her hope lies in the new housing plan announced by the ministry, which points to a willingness to reinstate subsidies for both construction and purchase.
Her other hope lies with the Balearic Government's land development law. "We hope they get their act together and that town halls provide the push to new developable land." This new land for development is either for VPO homes or limited price housing, which is more expensive than VPO but still well below market rates; it is more attractive to developers.
But if the Marga Prohens government is working on a price containment policy, it can't be said to be having much impact. College of Notaries' figures for the end of 2025 confirmed that the Balearics are one of Spain's most expensive regions. The average price per square metre was €4,061, more than double the Spanish average. And this figure has been rising at a double-digit rate over the past five years.