Last year we posted the article How to Get Sustainable Solutions for Airbnb in High-Pressure Housing Markets. Things have taken quite a turn now as Spain now actively removes 66,000 illegal Airbnb listings to combat housing shortages and overtourism.
Before you assume I’m against Airbnb – I’m not. I use it regularly, both at home and abroad. But even I can’t ignore the impact platforms like Airbnb have on the livability of cities.
Consumer Rights Minister Pablo Bustinduy leads this crackdown, targeting non-compliant rentals lacking licenses or proper documentation. Globally, cities like Barcelona, New York, and Amsterdam face similar challenges as short-term rentals inflate rents, reduce housing stock, and disrupt communities.
In this article we explore Airbnb’s impact on the rental housing markets worldwide, identify affected groups, and propose measures to ensure cities remain sustainable microcosms where residents can live and work. We also include comprehensive data tables showing listings, revenue, and rental price surges, while a critical perspective evaluates Airbnb’s role.
Additional solutions we present aim to balance tourism with housing needs, ensuring urban sustainability.
Airbnb’s Impact on Rental Housing Markets
As we reported before, Airbnb transforms global tourism with millions of listings, generating substantial revenue but straining housing markets. Short-term rentals compete with long-term housing, driving up rents and exacerbating shortages in urban centers. Overtourism fueled by platforms like Airbnb also disrupts local communities, prompting widespread regulatory responses.
Let’s have a look at each of these problems.
Rising Rents and Shrinking Housing Stock
Airbnb reduces long-term housing availability, pushing rents higher. In Barcelona, short-term rentals cause a 1.9% average rent increase, with spikes up to 7% in tourist-heavy areas. Paris and London experience 1-2% rent hikes in popular neighborhoods. Amsterdam sees 1-3% increases. In the United States, a 2019 Harvard study finds a 0.018% rent rise per 1% increase in listings, but New York City tenants face annual rent increases of approximately $400, equating to 1-2% in affected areas.
Lisbon’s restrictions, however, reduced rent growth by about 9%, demonstrating the link between short-term rentals and affordability.
Spain’s housing crisis, with a 450,000-home shortfall, worsens as Airbnb listings convert residential units into tourist accommodations. Similar patterns appear in Florence, Berlin, and Vancouver, where rent increases range from 1-3% in high-density Airbnb zones.
Overtourism and Community Disruption
Airbnb contributes to overtourism, overwhelming infrastructure and eroding community cohesion. In Florence, Venice, and Amsterdam, short-term rentals drive overcrowding, prompting strict regulations. Amsterdam now caps rentals at 30 nights annually, while Barcelona plans a full ban by 2029. Residents report noise, safety concerns, and a “hotelization” of neighborhoods. Barcelona’s protests against overtourism are proof of local frustrations, with similar sentiments in Venice and Lisbon’s historic districts.
Airbnb Listings and Rental Price Surges
The table below details Airbnb listings and their impact on rental prices across key countries, based on 2021 data unless otherwise noted:
| Country | Number of Airbnb Listings (2021) | Rental Price Surge |
|---|---|---|
| United States | 2,250,000 | 0.018% per 1% listing increase; NYC: 1-2% |
| France | 1,200,000 | Paris: 1-2% in high-activity areas |
| China | 1,148,885 | No data available |
| Italy | ~500,000 (estimated) | Florence: 1-3% in tourist areas |
| Spain | ~321,000 (2024, licensed) | Barcelona: 1.9% avg., up to 7% in top areas |
| United Kingdom | ~250,000 (estimated) | London: 1.5-2% in high-density areas |
| Brazil | ~200,000 (estimated) | No data available |
| Mexico | ~180,000 (estimated) | No data available |
| Germany | ~150,000 (estimated) | Berlin: 1-2% pre-2018 ban |
| South Africa | 65,000 (2023) | No data available |
| Indonesia | 61,000 | No data available |
| Netherlands | ~50,000 (estimated) | Amsterdam: 1-3% in tourist areas |
| Portugal | ~40,000 (estimated) | Lisbon: ~9% rent growth reduction |
| Canada | ~30,000 (estimated) | No data available |
Notes: Spain’s 2024 figure reflects licensed listings after the 2025 crackdown. Estimates for Italy, UK, Germany, Netherlands, Portugal, and Canada use 2018-2019 data or regional trends due to incomplete 2021 figures. Rental price surges are city-specific or based on broader studies, with limited data for some countries.
Host Revenue Generated by Airbnb
Airbnb hosts earn billions annually, contributing to local economies but intensifying housing pressures. The table below outlines estimated host revenue (gross, before Airbnb’s 3-16% fees) for 2021 unless otherwise specified, alongside rental price impacts:
| Country | Number of Airbnb Listings (2021) | Estimated Host Revenue (2021, unless noted) |
|---|---|---|
| United States | 2,249,434 | $21.4B |
| France | 1,209,036 | $4.56B |
| China | 1,148,885 | Est. $1-2B (Asia-Pacific $104/night avg.) |
| Italy | 683,619 | Est. $2-3B (Europe 144M nights, $114/night) |
| Spain | 542,138; ~321,000 (2024) | Est. $1.5-2.5B (Europe 144M nights, $114/night) |
| United Kingdom | 567,027 | $2.9B |
| Brazil | 619,449 | $0.9B |
| Mexico | 391,619 | Est. $0.8-1.2B (Latin America 42M nights, $81/night) |
| Germany | 310,182 | Est. $0.8-1.5B (Europe 144M nights, $114/night) |
| South Africa | 65,000 (2023) | $211M (2022) |
| Indonesia | 61,000 | Est. $100-200M (Asia-Pacific $104/night) |
| Netherlands | ~50,000 (estimated) | Est. $100-200M (Europe 144M nights, $114/night) |
| Portugal | ~40,000 (estimated) | Est. $80-150M (Europe 144M nights, $114/night) |
| Canada | 302,222 | Est. $0.6-1B (North America $208/night) |
Notes: Revenue estimates use regional averages (e.g., $114/night in Europe, 26-55% occupancy). Spain’s 2024 listing reduction likely lowers revenue from 2021 estimates. Data gaps require estimates for some countries.
Groups Immediately Impacted by Airbnb
Airbnb’s effects disproportionately harm certain groups while benefiting others, creating a complex social and economic landscape.
Tenants and Low-Income Residents
Short-term rentals hit renters hardest, particularly low-income households. In Barcelona, New York, and Paris, rent increases of 1-7% force displacement. Young professionals and students struggle to afford housing in tourist-driven markets. Housing shortages, like Spain’s 450,000-home deficit, exacerbate these challenges, pushing vulnerable residents out.
Local Communities
Residents in tourist hotspots like Venice, Florence, and Barcelona’s Gothic Quarter face declining quality of life. Transient guests replace long-term neighbors, weakening social bonds. Local businesses, such as grocery stores, give way to tourist-oriented cafes, as seen in Lisbon’s historic districts. Noise and safety concerns further disrupt communities.
Hosts and Tourism-Dependent Workers
Hosts, especially small-scale ones, benefit significantly. South Africa’s 65,000 listings generate $211 million (2022), while UK hosts earn $2.9 billion (2021). Tourism workers, including cleaners and guides, profit from Airbnb’s €29.6 billion contribution to Spain’s 2023 tourism (33.6% in rural areas). However, professional hosts managing multiple properties dominate profits, skewing benefits away from average residents.
Hotel Industry
Hotels face unfair competition from Airbnb hosts who often evade taxes and regulations. Cities like San Francisco (14% tourist tax) and Paris (variable rates) impose levies to level the playing field, but weak enforcement allows illegal listings to persist, harming traditional accommodations.
The Ghost City Effect
The issue of “ghost cities” or seasonally deserted areas outside peak tourist seasons is a growing concern in tourism-heavy regions globally. These ghost cities emerge when areas heavily reliant on seasonal tourism, such as coastal resorts or rural vacation spots, become largely abandoned during off-peak months, typically from November to March in Europe. Note that we see a similar ghost city effect in Summer in cities with a huge number of students.
But let’s focus on Spain. In Spain this phenomenon ties directly to the reliance on short-term rentals like Airbnb, which amplifies the problem.
Ghost Cities in Spain Outside Peak Seasons
Spain’s tourism industry, contributing €29.6 billion in 2023, thrives during summer months (June to August), when temperatures average 21-37°C and attractions like Barcelona’s beaches or Andalusia’s coast draw millions. However, outside this peak, many areas transform into ghost cities. Coastal towns like those in Costa del Sol or the Balearic Islands see occupancy drop sharply, with beach resorts closing and businesses shutting down. The Canary Islands, while milder at 18°C in January, still experience reduced activity outside winter sun-seekers’ season. Northern regions like Galicia and the Pyrenees, cooler at 4-12°C, see even less traffic, leaving streets empty.
This seasonal abandonment stems from Spain’s 321,000 licensed Airbnb listings (2024), many concentrated in tourist hubs. During off-season, these properties often sit vacant, as hosts – ranging from locals to foreign investors – target peak demand, leaving residential areas depopulated. Villages like Aceredo, which re-emerged from a reservoir in 2022 due to drought, show how infrastructure once vibrant can become relics when tourism fades. Historical examples, such as Perlora in Asturias, abandoned since 2005, attract summer visitors but stand desolate otherwise, with restricted access again showing their seasonal relevance.
Contributing Factors
The rise of short-term rentals exacerbates this. In Barcelona 11,500 listings involve multi-property hosts, many ceasing operations off-season, turning neighborhoods into ghost zones. Globally, 60% of U.S. hosts rent primary homes while on vacation, a trend mirrored in Spain, where second-home owners in Mallorca or Alicante list properties seasonally. Economic incentives drive this: average host earnings of $3,133 monthly in Barcelona (2021 data) spike in summer but plummet outside it, discouraging year-round use. The high nonpermanent occupancy reduces incentives for shops, restaurants to operate off-season, creating a feedback loop of abandonment.
Broader Implications
This creates “ghost cities” beyond just vacant buildings – entire community structures collapse. In Spain, 3.4 million unoccupied homes from the 2008 financial crisis already strain housing, and seasonal tourism adds to this by prioritizing tourist revenue over local residency. Rural areas see depopulation accelerate, with villages like Janovas or Belchite becoming historical curiosities rather than living spaces. Globally, similar patterns appear in Greece’s islands or Italy’s Venice, where off-season desolation mirrors Spain’s challenges.
The narrative that tourism boosts economies overlooks these ghost city effects. Airbnb and regulators tout 400,000 jobs at risk with restrictions, but this seasonal focus may hollow out communities, forcing locals to relocate. Seasonal ghost cities may reflect not just tourism but a failure to balance housing and economic policy, leaving sustainable living at risk.
Who are the Airbnb Hosts?
The profile of Airbnb hosts reveals a diverse group driven by economic opportunities, tourism demand, and regulatory dynamics.
Globally, Airbnb hosts number over 5 million, with Spain contributing approximately 250,000 listings (based on 2021 data, adjusted for the 2025 crackdown reducing licensed listings to ~321,000). Women dominate hosting worldwide, comprising 56% of hosts. Seniors represent the fastest-growing demographic globally, with over 400,000 senior hosts. Age demographics show 36% of Airbnb users (a proxy for hosts) are 25-34 years old, 15% are 18-24, and 13% are 55+, suggesting a mix of young professionals, students, and older individuals.
Economic Motivations
Economic necessity and opportunity is what drives the hosts – especially in Spain as we will see. Worldwide, the average host earns $13,800 annually, with U.S. hosts at $14,000, and Spanish hosts in tourist hotspots like Barcelona potentially earning similar amounts (e.g., $3,133 monthly). In Spain, where 52% of adults face a cost-of-living crisis, many hosts – locals and expatriates – rent out primary residences or spare rooms to supplement income.
Globally, 60% of U.S. hosts rent out primary homes while on vacation, a practice likely common in Spain’s urban centers like Madrid and coastal areas. Professional hosts, managing multiple properties, are significant, with 11,500 of Barcelona’s 11,500 listings tied to such operators, mirroring a global trend where a quarter of multi-host revenue comes from those with 10+ properties. Investors, including foreigners from Northern Europe and Russia, buy second homes in Spain (e.g., Mallorca, Alicante) for rental income, aligning with Spain’s status as Europe’s leader in second homes.
Types of Hosts
Occasional hosts—often locals or retirees—rent out spare rooms or homes seasonally, aligning with the original sharing economy model. Second-home owners, prevalent in coastal and rural areas, use platforms to offset maintenance costs. Professional hosts and investors, concentrated in tourist zones, operate multiple listings, contributing to the “hotelization” effect criticized in housing debates. In Spain, foreigners, including “guiris” in rural Granada and Russians in Valencia, add to this mix, though their exact numbers remain unclear. Worldwide, 23% of hosts started as guests, where new hosts emerge from tourism exposure.
Impact of Regulations
Spain’s 2025 crackdown, removing 66,000 illegal listings, targets unlicensed operators, likely professional hosts and investors lacking proper declarations. Globally, 80% of Airbnb’s top 200 markets face regulations, and Spain’s rules – requiring licenses and VAT increases to 10% for properties with three+ rentals – pressure compliance. This hits professional hosts hardest, while occasional hosts may adapt with streamlined licensing. Rural areas, where 17.6 million additional visitor nights occurred from 2018-2023, rely on hosting for economic revitalization, a trend Airbnb defends globally. However, critics argue regulations favor hotels, potentially sidelining small-scale hosts in Spain, where 400,000 jobs and €30 billion in income are at risk.
Critical Perspective
The narrative of hosts as struggling locals holds truth but oversimplifies. While some Spanish hosts – seniors, young couples – rely on Airbnb for survival, others, especially foreign investors, exploit tourism for profit, exacerbating housing shortages.
The 95% unlicensed listing rate in Montreal for instance suggests Spain’s enforcement challenges may hide a larger professional host presence. Airbnb’s appeal against the crackdown and global resistance to regulations raise questions about corporate accountability versus host welfare, with data opacity obscuring the true demographic split. The profile likely blends necessity-driven locals, opportunistic expatriates, and profit-focused investors, with Spain’s tourism-driven economy amplifying all three.
Spain’s Airbnb hosts mirror global trends: predominantly women, including a rising senior cohort, motivated by income needs and tourism potential, with a mix of occasional renters, second-home owners, and professional operators. Regulations change this landscape, favoring compliance among smaller hosts while challenging larger players, though the balance remains contested.
Measures for Sustainable Urban Microcosms
Cities actively adopt measures to balance tourism with housing needs. Spain’s crackdown, alongside New York, Barcelona, and Amsterdam, sets a precedent, but additional solutions ensure sustainability.
Existing Regulatory Measures
- Licensing and Caps: San Francisco limits unhosted rentals to 90 days annually. Vancouver allows 30 nights. Berlin caps second homes at 90 days.
- Bans in High-Demand Areas: Barcelona plans a 2029 ban. Florence restricts historic center rentals. Penang, Malaysia, bans short-term rentals (2023).
- Taxation and Fees: Paris and Santa Monica impose tourist taxes (variable and 14%). Revenue funds housing initiatives.
- Zoning and Registration: New York mandates host registration. Tokyo caps rentals at 180 days to ensure compliance.
Proposed Solutions for Sustainability
- Dynamic Rental Caps: Implement caps based on vacancy rates: 30 days in cities with <5% vacancy (e.g., Barcelona), 90 days elsewhere.
- Progressive Taxation: Tax hosts with 3+ properties at 20%, single-property hosts at 5%. This discourages speculative investment.
- Data Transparency: Require Airbnb to share anonymized listing and booking data. Fine non-compliance, following Italy’s proposed model.
- Incentives for Long-Term Rentals: Offer tax breaks for converting short-term rentals to long-term leases, as Portugal does. Add rent control in Airbnb-heavy areas.
- Community Impact Fees: Charge $2-5 per night in tourist zones. Fund affordable housing, as Athens’ 2025 tax hike (1.5€ to 8€) demonstrates.
- Tourism Zoning: Designate short-term rental zones, like Miami Beach. Enforce via geofencing, as Amsterdam trials.
- Public Housing Investment: Redirect Airbnb tax revenue to build homes, addressing Spain’s 450,000-home shortage.
- Resident Priority Policies: Require hosts to live in properties 275+ days annually, as San Francisco mandates, prioritizing local housing.
Weak enforcement undermines regulations. Cities could for instance deploy AI-driven monitoring to scrape Airbnb data. Dedicated compliance teams, like Paris’, ensure accountability. Fines for illegal listings must exceed profits to deter violations.
Responsibility versus Profit
Airbnb fuels tourism but exacerbates housing crises, displacing tenants and disrupting communities. Spain’s 2025 crackdown, targeting 66,000 illegal listings, joins global efforts to address these issues. Tenants, low-income residents, and local communities suffer most, while hosts and tourism workers benefit.
Cities like Barcelona, New York, and Amsterdam pioneer restrictions, but dynamic caps, progressive taxes, and data transparency strengthen sustainability. Airbnb must share responsibility, not just profits, to preserve cities as equitable microcosms.
Robust enforcement and housing investments ensure residents can live and work in vibrant urban environments.
