Else Beekman
In Spain’s continuing and worsening housing crisis, even Galicia, in the far northwest of Spain, is not left behind. The region is facing an unprecedented housing crisis due to the rapid rise of tourist rentals. Over the past seven years, the number of properties dedicated to short-term tourism has increased more than sevenfold, soaring from 20,000 to nearly 140,000.
This surge has led to a severe shortage of affordable long-term rental housing and is forcing many residents to leave their hometowns due to skyrocketing rents.
For every hotel that opens in Galicia, an astonishing 415 new holiday rental apartments emerge. A clear example of this crisis is Santiago de Compostela. This city is famous for its historical significance and the key destination for tens of thousands of pilgrims who finish their Camino de Santiago. Here, the problem is particularly acute. The city now has 700 tourist apartments, compared to just 300 available for long-term rental, doubling the supply of short-term lets over conventional housing.
Last year the Santiago city council declared illegal tourist flats that don´t comply with the General Plan for Municipal Planning (PXOM) and Special Plan for the Historic City. As such, the council forced hundreds of tourist apartments in the Galician city of Santiago de Compostela to close in the city’s old town. Now it limits their use to ground and first floors in buildings.
The impact on local communities
The housing crisis in Galicia is not only affecting renters but also driving a surge in mortgage activity. In November 2024, the number of mortgages granted for residential properties in Galicia skyrocketed by 40.4% compared to the same month in 2023, reaching 1,348 loans, according to the National Institute of Statistics (INE). This increase is significantly higher than the national average of 16.6%, highlighting the growing pressure on the housing market in the region.
The dominance of tourist rentals is not just an inconvenience; it has become a major socio-economic issue. Rising rental prices have made it increasingly difficult for locals to afford housing. A resident expressed frustration: “The situation is dire because the authorities are prioritising tourists over workers, and with rental prices so high, it’s becoming impossible to make ends meet.”
Measures to regulate the sector
Other municipalities in Galicia are also taking action. In Illa de Arousa, Pontevedra, the local government has imposed a new tax on tourist rentals, equating it to the waste disposal fee applied to businesses. The mayor defends the decision, “These rentals are an economic activity, just like any other business, and we should tax these accordingly.”
However, not everyone agrees with these measures. Many homeowners who rent out their properties argue that they are being unfairly penalised. María José, an elderly resident, inherited a second home from her mother and rents it out to supplement her modest pension of €800 per month. She now faces an increased municipal tax of €284, compared to the €150 paid by regular homeowners. “I can barely afford to maintain both houses,” she laments. Other residents also claim that tourist apartments generate less waste, as visitors spend most of their time dining out and exploring local businesses.
A divided community
While some property owners rely on short-term rentals to sustain themselves financially, others see the sector as a threat to affordable housing. Brígida, a former shellfish harvester is now unemployed and rents out her home because she has no other choice. “I have no alternative; I need the income to survive,” she explains.
Also read: Tourism impact on the Camino de Santiago: Locasl call for respect