Barcelona And The Airbnb Backlash: Finding Balance In 2025

While soaking in the bright café scene in Barcelona over the weekend, the tourists were met by an unusual sight of thousands of demonstrators marching in the streets, some armed with water guns and others with placards screaming slogans like “Tourists Go Home.” Not only did this anti-tourism protest highlight some of the most urgent issues facing the city—overcrowding and an influx of cruise ship tourism into the port—but it also focused on its main theme: the effect of short-term rental platforms on housing affordability. The mayor of Barcelona reiterated plans to phase out permit applications for short-term tourist rentals by late 2028 so that 10,000 apartments could be converted back into long-term housing.

The Global Pushback Against Short-Term Rentals

Barcelona isn’t the only city taking steps to address these issues; New York City implemented a near-total ban on short-term rentals last year. However, many travelers see platforms like Airbnb, Vrbo, and Booking.com as transformative forces in the hospitality sector. These services provide affordable lodging options and allow visitors to experience destinations as locals while enabling homeowners to generate extra income by renting out spare rooms or properties part-time. They’ve also created opportunities for local entrepreneurs to invest in property rentals as a full-time business.

How Hotels Have Responded to the Disruption

Hotels, meanwhile, have had to evolve to compete with this new wave of accommodations. According to data from CoStar, a hotel analytics firm, the surge in available lodgings has made it more challenging for hotels to hike prices during peak travel periods. In response, some hotels have started offering more immersive and location-specific experiences, such as regional cuisine and cultural activities, to differentiate themselves.

The Unintended Consequences of Short-Term Rentals

Yet, these emerging markets often come with unintended side effects, which policymakers are now tackling. In sought-after destinations, a rising number of residential units are being transformed into short-term rentals. Long-term residents frequently voice complaints about noise disturbances caused by tourists, whether from late-night parties or the constant clatter of suitcases in hallways.

The housing crunch is especially pronounced in Barcelona. Mayor Jaume Collboni notes that residential rents have skyrocketed by 68 percent over the past decade. He links this surge to the city’s more than 10,000 short-term rentals and the practice of full-time hosts monopolizing properties, leaving workers struggling to find affordable housing.

Regulating Without Overcorrecting

Depending on the region, some level of regulation can be justified. Reducing the number of properties exclusively dedicated to short-term rentals could ease pressure on the housing market. Imposing taxes on hosts at rates comparable to those levied on hotels seems equitable. Ensuring compliance with existing noise ordinances, commercial laws, and zoning rules is also a practical approach.

However, while short-term rentals are a convenient scapegoat in the quest for affordable housing, outright bans are not a panacea for deeper systemic challenges. Such prohibitions can also prove inefficient. For instance, if a homeowner lives elsewhere part-time, renting out their property during their absence can actually benefit the housing ecosystem. Many major cities, including San Francisco, Tokyo, and Vienna, have either introduced or proposed caps limiting short-term rental listings to 90 to 180 days annually. These limits strike a logical balance, allowing residents to earn supplemental income while preventing full-time operators from dominating the housing supply.

Finding a Sustainable Middle Ground

Local governments must strike the right equilibrium for their communities. While “overtourism” poses real challenges in certain areas, tourists also contribute vital revenue and support jobs and businesses. Excessive restrictions on short-term rentals risk alienating visitors and undermining the economic benefits they bring.