Spain's ban on tourist lettings backfires as long-term rental stock falls by 26,000 homes

A curious paradox has emerged in 2025. Authorities were confident that eliminating short-term tourist lettings would flood the long-term rental market with properties. The logic seemed sound.

Reality has proved otherwise. According to data from property portal Idealista, the volume of long-term rental housing has declined despite the mass revocation of tourist licences. In Valencia, 14,000 licences were withdrawn, yet long-term lettings increased by only 1,100—just 8 per cent of the expected outcome. In Catalonia, the picture was worse: 15,000 long-term rental apartments were lost, despite the revocation of 13,000 tourist licences.

Where have the properties gone? The answer is uncomfortable for policymakers: they have migrated to seasonal lettings. This grey area of regulation offers fewer restrictions and stronger profit margins. Seasonal rental listings increased by 58,000 units. The remainder have either been listed for sale or left vacant.

The lesson is clear: a housing crisis cannot be solved by banning tourist lettings alone. Market economics must change, otherwise supply simply shifts to other segments.