Thursday, March 20, 2025
Spain faces a severe housing crisis as skyrocketing rents push locals in Lanzarote to live in vans, while the demand for holiday rentals continues to surge.
A recent survey reveals that housing has emerged as the primary concern for residents on the popular holiday island of Lanzarote.
The housing crisis in Lanzarote has left many local residents resorting to living in their vehicles, a direct result of a growing shortage of affordable housing exacerbated by the surge in holiday rental properties. With rental prices soaring, an increasing number of people are finding themselves living in vans parked in various spots around the island.
The situation has become dire, with the average price of housing seeing a sharp rise of 40% since January 2021, climbing from €1,878 to €2,655 per square meter. This surge in housing costs has made it unaffordable for workers and small business owners to secure rental properties or purchase homes, with many unable to keep up with the increasing cost of living.
Among those impacted is a 40-year-old small business owner, originally from England but raised in Lanzarote, who has found it impossible to find affordable accommodation. The man, who prefers to remain anonymous, recently launched his own party and events company and supplements his income by working as a DJ.
Despite his efforts, earning €1,600 per month, he struggles to afford rent. Initially, he rented a holiday home for a month, paying €70 daily. However, he later purchased a van, which he personally converted into a mobile home. It includes a kitchen, shower, 140-litre water tank, and 400-watt solar panels. He has been living in the vehicle for the past six months, parking it in a local car park. He also owns a larger van for his work.
According to a report by the Canary Islands Institute of Statistics, Lanzarote currently has 36,384 tourist accommodations in holiday rentals. This is a significant increase from January 2021, when the island had 11,000 fewer rental properties. In 2024, the island saw a record-breaking influx of over 3.2 million visitors, further fueling the demand for tourist housing.
On the other hand, Lanzarote has not seen a new social housing development since 1994, leaving local residents increasingly vulnerable to the ongoing housing shortage.
