Barcelona and the Airbnb backlash
Holidaymakers enjoying the cafés of Barcelona last weekend encountered an unexpected sight: several thousand protesters marching by, some wielding water pistols, others holding signs reading “Tourists go home.” The anti-tourism protest highlighted various issues, including overcrowding and the influx of cruise ships docking in the city port. A significant focus of the protest—and the city’s response—was the impact of short-term rentals via platforms like Airbnb on housing costs. The mayor of Barcelona reiterated a commitment to phase out short-term tourist rental licenses by late 2028 and return 10,000 apartments to the residential market.
Barcelona is not alone in taking such measures; New York City effectively banned short-term rentals last year. However, many travelers view platforms like Airbnb, Vrbo, and Booking.com as beneficial disruptors of the hospitality market. These platforms make affordable accommodations and a “local living” experience more accessible to visitors, while providing homeowners an easy way to earn extra income by renting out spare rooms or part-time residences. They have also opened new business opportunities for local entrepreneurs who can buy and rent out properties full-time.
Hotels have had to adapt to this new competition. According to hotel data analytics firm CoStar, the increased supply of lodgings has made it harder for hotels to inflate rates during peak travel seasons. In response, some hotels have sought to offer more authentic experiences, such as local food and immersive activities, to better fit their locations.
However, these new marketplaces often lead to unintended consequences, which lawmakers are now addressing. In popular destinations, an increasing number of residential properties are being converted into short-term rentals. Long-term residents frequently complain about the noise from tourists partying or wheeling suitcases along hallways.
The housing squeeze is particularly acute in Barcelona. Mayor Jaume Collboni reports that residential rents have soared by 68 percent over the last decade. He attributes this increase to the city’s over 10,000 short-term rentals and the hoarding of properties by full-time hosts, making it difficult for workers to find affordable housing.
Depending on the locality, some form of regulation can be reasonable. Reducing the number of apartments dedicated exclusively to short-term rentals can help alleviate housing market pressures. Taxing hosts at rates similar to those for hotels is fair. Ensuring that renters comply with existing noise, commercial, and zoning regulations is also sensible.
However, while short-term rentals are an easy target in the effort to provide affordable housing, banning them is not a substitute for addressing broader structural issues. Outright bans can also be inefficient. If a homeowner is only a part-time resident, renting out their property when absent can benefit the housing market. Many large cities, such as San Francisco, Tokyo, and Vienna, have implemented or proposed 90- to 180-day caps on the number of days a property can be listed for short-term rentals. These caps are more logical, allowing residents to earn extra income while preventing full-time hosts from monopolizing the housing supply.
Local authorities need to find the right balance for their towns or cities. “Overtourism” is a genuine problem in some areas, but tourists also bring valuable revenue and support local jobs and businesses. They should not be barred or priced out by excessive restrictions on short-term rentals.
