In Ibiza, where tourism has long been the lifeblood of the economy, local residents are increasingly being priced out of the housing market. César Nebrera, a chef, has been living in his car for the past three years because he cannot afford a flat. 'I miss the basic things that make life comfortable, like being able to stand up in your own home, being able to cook properly, or even open a drawer and pull out some socks,' he said.
Mr Nebrera is not alone. The IGC, a representative body of the civil guard police force, said last year that three or four of its officers were living in vehicles on the island. Others have resorted to tents or extremely basic shared accommodation. Daniel Granda, spokesman for the Sindicato de Inquilinas de Ibiza y Formentera, said such situations are becoming commonplace. 'A lot of people end up in quite miserable conditions, and we're starting to see slums across the island,' he added.
Rental prices across the Balearic Islands have increased by an average of 18% over the past year, compared with a 12% rise nationwide, according to external figures. In Ibiza, the increases have been even steeper, with some cases reaching 40-50% in the last year alone. High interest rates and the cost-of-living crisis have deterred many Spaniards from buying property, boosting demand for rentals. Meanwhile, Ibiza's status as a tourism hub, with a population of just 160,000, received close to four million tourists last year. Much of its housing is available only at short-term tourist rates, pricing out local workers.
Isabel María Pérez, a supermarket cashier, and her partner, who works in a five-star hotel, had to leave their rented apartment when it was sold. They now live with her mother-in-law and are considering returning to mainland Spain. 'The problem in other parts of Spain is that there isn't much work. Here there's all the work you could want, but there isn't anywhere to live,' she said. A single room on the island costs between €700 and €1,000 per month, while a modest flat can cost around €1,500.
The conservative regional government of the Balearic Islands has declined to implement a Spanish housing law that would cap rentals in areas where prices have soared. Instead, it attributes the problem to homeowners offering properties for short-term rentals, contrary to local laws requiring minimum six-month lets. Since 2019, the authorities have imposed around €4m in fines related to illegal tourism activity.



