Boasting remarkable weather, rich cuisine, and captivating architecture, Spain welcomed a staggering 98 million travelers in 2024, securing its place as the world’s second most visited destination, just behind France. However, this level of tourism has caused significant challenges for local residents.

The sharp increase in short-term rentals listed on platforms like Airbnb has led to a serious housing shortage in major Spanish cities such as Madrid, Barcelona, and Valencia. This crisis has quickly grown into the country’s top concern, according to the Spanish Center for Sociological Research. In response, the government is now taking strong measures.

Earlier this month, Spain’s Ministry of Social Rights, Consumer Affairs, and the 2030 Agenda demanded Airbnb take down nearly 66,000 property listings, claiming they are in breach of regulations governing tourist accommodations.

Although Airbnb is contesting the order, many Spanish citizens believe the action is long overdue, as rising housing costs are impacting their quality of life.

“It is heartbreaking not being able to afford even modest rent or buy a decent home,” said Madrid local Enrico Congiu to CNN. The 40-year-old family physician still shares an apartment with two peers near the city center.

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‘Urban centers becoming amusement parks’

Barcelona resident Raquel Pérez, 41, is among many professionals frustrated with the tightening rental market. She believes regulating vacation rentals is the only path forward.

“Today, renting a flat in Barcelona feels nearly impossible,” she shared with CNN. “Locals like myself, even at 40, are forced to live in shared flats or relocate to satellite towns.”

She continued, “I support removing licenses for tourist apartments and converting them into homes for long-term rent. I would implement this rule by 2026 if possible.”

The cost to rent per square meter has risen by 85% across Spain over the last decade, according to data from property site Idealista. Short-term tourism rentals are widely seen as a primary cause.

Spain now hosts about 400,000 tourist rental units, per the Spanish Statistical Office. Meanwhile, the Bank of Spain estimates there’s a housing shortfall of between 400,000 to 450,000 units — numbers that appear to have galvanized the national government’s crackdown on unlawful rentals.

“Each of those 65,000 listings once housed families, workers, and students who are now displaced while their neighborhoods are transformed into playgrounds for profit,” said Pablo Bustinduy, Spain’s minister for social rights, consumer protection, and the 2030 agenda.

The ministry revealed that most listings targeted had no valid license, provided incorrect information, or omitted the legal owner’s identity.

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‘Broad-stroke approach’ under fire

Madrid’s High Court supported the ministry's request, ordering Airbnb to immediately remove 5,800 listings located across regions including Andalusia, Madrid, Catalonia, Valencia, the Balearic Islands, and the Basque Country.

Airbnb, responding to CNN, said it will fully contest the rulings and accused the ministry of using a “broad-stroke approach” that unfairly targets properties that may not even require licensing.

The platform also pointed out that it is already collaborating with local authorities in the Canary Islands, Murcia, and Ibiza to fight illegal listings.

Local governments aren't standing still either. Barcelona’s City Council announced in June 2024 its plans to cease renewing licenses for tourist apartments starting in 2028. This means over 10,000 listings will revert to availability for residents.

Some property owners are outraged. The Barcelona Tourist Apartment Association is seeking compensation of over $4.4 million, citing losses tied to 7,200 affected units.

Still, many doubt such policies alone will resolve the underlying problem.

“Affordable housing and stricter regulations must go hand in hand,” said Barcelona resident Xavier Solé to CNN.

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‘Likely for the greater good’

Interestingly, some travelers support these rental restrictions, even while they benefit from the affordability and comfort Airbnb provides.

Lara Sorbili, who visited Madrid from Buenos Aires, told CNN that despite using Airbnb herself, she supports actions that make housing more accessible to locals.

“Staying in an Airbnb is just more practical — with a kitchen and a fridge, it makes family trips more manageable,” she said. “But I still agree with regulations if they help bring prices down for residents.”

Deborah Murphy, a visitor from Ireland, echoed the sentiment, viewing the regulations as beneficial in the long run.

“There are already plenty of hotels,” she said. “When tourists take over local homes, residents lose housing — and often, tourists contribute little to the local economy.”