Barcelona will eliminate tourist apartments
Barcelona's city council plans to revoke tourist apartment licenses by 2028, impacting 10,000+ properties due to over-tourism and housing price concerns. Mixed reactions arise over the move's impact on residents and platforms like Airbnb.
Read original articleBarcelona's city council has decided to revoke all licenses for tourist apartments in the urban area by 2028, affecting over 10,000 properties. This move comes as a response to local backlash against over-tourism and rising housing prices, with the mayor citing a 70% increase in rental prices and a 40% increase in purchase prices over the last decade. The decision is seen as a victory for anti-tourist activists and a setback for platforms like Airbnb and Booking.com. The move aims to address the housing crisis by reallocating these properties for residential use by locals. Additionally, new legislation will require building constructors to allocate at least 30% of new homes to social housing. The decision has sparked mixed reactions, with some supporting the measure to improve quality of life for residents, while others, like Airbnb landlords, criticize it for potentially causing a recession and not effectively solving the housing issue.
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They are freeing up ~10,000 houses over the next four years with this legislation. Barcelona built ~15,000 new properties between 2011 and 2020.
The math don't math. It's a drop in the bucket. The entire impact of AirBnB + all housing built in the last decade does not offset the last half decade of population growth.
Housing must be built more quickly than your population is growing to keep prices down, or you must concede that you live in a nice area where people wealthier than you wish to be and that those people are going to gentrify the area and displace locals. It's an unpleasant reality of the world.
EDIT: some good feedback in the responses. thanks! I'm being a bit dramatic by saying it's just a drop in the bucket, this action frees up more housing than was built over the same timespan, and it's possible to have effects on pricing greater than what would be inferred by the raw numbers because economics is tricky. cheers.
It seems to me that this change will have unintended effects and will fail to produce the desired results.
AFAIK rent in NYC hasn’t gone down since they changed their short-term rental regulations.
I might be naive, but I’d assume that the solution is to build more housing to increase the supply instead of curbing the demand?
Genuinely curious about others’ takes on this.
tourism can be so lucrative that it is actually profitable to force out normal people and completely reorient the economy away from all other productive activities. eventually large parts of the city will become totally stagnant, but this doesn't seem to stop tourists from coming. there's often a constituency of people who are really benefiting from tourism (property owners, tour operators, restaurants) and who form a powerful bloc opposed to any restrictions or taxes.
it really seems quite similar to an economy where natural resource profits drive everything, it's impossible to get any other industries off the ground or make enough money to live in any other way.
Taxing short term rentals to build affordable housing seems like a good idea to me.
We should go the asian route of increasing density and size. It's not like Barcelona is fully developed border to border.
Thus, I don't think the city will really suffer from shrinking of the cheap tourism segment. Barcelona is already overcrowded, so making this crowd less dense and more rich at the same time is a net positive scenario. Also, the city needs long-term housing for those who work and study there.
There are lots of beautiful hotels in Barcelona. I visited the city about 10 times and never stayed in the same hotel twice, the choice is wild.
https://www.reuters.com/world/europe/catalonia-cracks-down-b...
We stayed in a few different week-long AirBnBs (or some other rental service) in 2019 in Barcelona and loved it. Although, and this could be a big source of the problem, both people we met up with to get keys were not Spanish and specifically asked if we could speak French or German instead.
We can all speculate till the sun goes down about what we think is going to happen, now we're going to get real data. This is great.
Even if the outcomes are "bad", they can just undo this is ~5 years. At least we will have all learned from it.
Platforms like AirBnB only put oil in the fire when it comes to housing crises.
In Spain, home owners associations can forbid tourist apartments if they vote it. Why can’t they just do it?
Spain is suffering a multi-centralization process. Madrid, Barcelona, Valencia and Malaga are increasing their populations. The rest of the cities are losing inhabitants. Why? Because the job opportunities are not there.
To me it seems much more likely that this is the reason for such bans because in housing terms the number of Airbnb properties seems far too small to make a difference.
My money is on what happens every time governments stick their hairy knuckles in the delicate mechanics of the free market: the economy works around them.
IMO, in this case, it will foster a huge black market (because there's strong demand for the stuff) and make a stream of taxable income disappear underground altogether.
> "Spain is Europe’s fastest-growing big economy. Nearly three-quarters of the country’s recent growth and one in four new jobs are linked to tourism"
70% is ~5.4% yearly, 40% is 3.4% growth yearly. Seems, fine?
These are incredibly reasonable growth rates. Am I missing something?
1. To outlaw AirBnB. Except if people are staying in your house while you're there. Other than that, it should be illegal;
2. 80% Capital Gains Tax on property sales other than your primary residence, withheld at source.
3. Withold 40% of rent income at source, which can only be credited against taxable income in the state and country; and
4. Tax non-primary residences at 2% of their market value every year in addition to any property taxes; and
5. If landlords want out, let the state buy them out and use those properties for affordable housing for all citizens. The UK previously came "dangerously" close to eliminating landlords this way last century [1].
EDIT: another big one:
6. Ban HOAs. Entirely. They are anachronism invented to enforce segregation. Any function they perform (eg picking up trash, tending communal parks) is and should be the function of local government, which is democratic. HOAs are not.
Lastly, the one exception I would carve out is for multi-families and ADUs (accessory dwelling units). These were once commonplace but are now prohibited in most of the US.
Just like renting out a room in your house while you're there, ADUs mean the landlord is also affected by any potential misdeeds or abuse by the tenant so is invested in that not happening.
[1]: https://www.theguardian.com/lifeandstyle/2024/mar/19/end-of-...
Maybe it's a bigger problem than Airbnb?
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