Island Residents Grapple with Soaring Housing Costs and Limited Availability

Lanzarote is facing a severe housing crisis, perceived by residents as the island’s most pressing issue. A recent survey conducted by the Lanzarote council underscores this sentiment, revealing a notable disparity between housing concerns and other local problems. The escalating cost of rentals and the overall scarcity of available properties are at the heart of this crisis, creating a challenging environment for both residents and prospective newcomers.

The Tourist Rental Boom: A Double-Edged Sword

A significant factor contributing to the housing shortage is the proliferation of properties dedicated to tourist rentals. According to the survey, 57% of respondents identified this as a primary driver of the crisis. the allure of short-term tourist rentals has incentivized landlords to convert long-term residential properties, further constricting the supply available to local residents. This trend is exacerbated by a general lack of rental supply, cited by 43% of those surveyed.

The Canary Islands Government Registry indicates that there are nearly 10,000 holiday homes on the island, a significant increase of approximately 5,000 in just four years. This surge in tourist accommodations has effectively removed a significant number of properties from the long-term rental market, intensifying the housing shortage.

Vacation homes are already two thirds of the total tourist offer of the island.

Rental Prices Skyrocket: A Statistical Overview

The perception that rental prices are “going up a lot” is not merely anecdotal; it is supported by concrete data.Two out of three interviewees expressed this concern, and the numbers bear out thier experiences. In Arrecife, the island’s capital, rental prices have seen a dramatic increase.Data from the idealist portal, compiled by the Cabildo data center, shows a 30% surge in rental prices during 2022 alone.This upward trend has continued, reaching a historical maximum of €13.1 per square metre in February of this year, a significant jump from €7.8 in January 2022.

this rapid escalation in rental costs is placing immense pressure on residents, particularly those with lower incomes. The disparity between wages and housing expenses is widening, making it increasingly arduous for individuals and families to secure affordable housing.

Sales Prices Follow Suit: A Broader Market Analysis

The trend of rising prices extends beyond rentals to the sales market as well. The average price per square meter on Lanzarote is currently €2,655, with considerable variations across different municipalities. Arrecife has the lowest average at €1,927,while Yaiza and Tias command the highest prices at €3,566 and €3,622,respectively.Teguise sits at €2,593 per square meter.

Compared to the national average of €2,271 per square meter in Spain, Lanzarote’s sales prices are considerably higher. Even compared to the Canary Islands average of €2,922, Lanzarote remains a costly market. Over the past four years, the average sale price has increased by 40%, climbing from €1,878 in January 2021 to the current €2,655 per square meter.

A Perfect Storm: Tourism, Population Growth, and Economic Factors

The housing crisis in Lanzarote is the result of a confluence of factors, including increased tourism, population growth, and economic disparities. The island experienced a record-breaking year for tourism in 2024, welcoming 3.2 million visitors, in addition to 600,000 cruise ship passengers. This influx of tourists has fueled demand for services and labor, leading to job creation. However, wages have not kept pace with inflation and the rising cost of living, leaving many residents struggling to afford housing.

Arrecife has experienced a population boom, becoming the second fastest-growing city in Spain, with a 5.1% increase in population last year, according to the National Statistics Institute. This rapid population growth further exacerbates the housing shortage, as the supply of available properties struggles to keep up with demand.

Limited Options: A Glimpse into the Rental and Sales Market

A survey of online property portals reveals the stark reality of the housing market in lanzarote. A search on idealist shows a limited number of rental properties available, with only a handful priced below €1,000 per month. These cheaper options often come with stringent requirements, such as “only good jobs” or “only for companies,” effectively excluding many potential renters.

The sales market offers slightly more options, but many of the cheaper properties are advertised as “chance only for investors,” indicating that they may be occupied by tenants with existing contracts, uninhabitable, or have other underlying issues. This lack of affordable and readily available housing is creating a challenging environment for residents and those seeking to relocate to the island.

In Arrecife,the rental price has not stopped rising in recent years

Addressing the Crisis: Potential Solutions and Future Outlook

Addressing the housing crisis in Lanzarote will require a multi-faceted approach,including measures to regulate tourist rentals,increase the supply of affordable housing,and improve wages for local workers. Potential solutions could include incentivizing landlords to offer long-term rentals, constructing new affordable housing units, and implementing policies to ensure that wages keep pace with the cost of living.

The future of Lanzarote’s housing market hinges on the ability of local authorities and stakeholders to address these challenges effectively. Failure to do so could have significant social and economic consequences, impacting the island’s long-term sustainability and the well-being of its residents.

A Market Distorted: High Prices and Opaque Deals

Lanzarote’s real estate market presents a challenging landscape for prospective buyers. A fast glance at online portals reveals asking prices that seem detached from reality, with many properties burdened by legal complexities. Advertisements frequently include disclaimers such as asset is occupied by person without just title or cannot be visited,raising red flags for potential investors. These listings, often priced around €100,000, highlight the precarious nature of some property deals on the island.

The situation is further exacerbated by the scarcity of affordable options. As an example, a 47-square-meter apartment in Argana Alta is listed for €127,000, while a mere 25-square-meter apartment in the tourist hotspot of Puerto del Carmen commands a price of €135,000. Such figures underscore the intense pressure on the local housing market,particularly in popular areas like Arrecife and Puerto del Carmen.

adding to the complexity, some listings offer unconventional deals, such as Flight right for two homes of about 100 meters each, with future possibility of building a third plant for €80,000. These types of offers reflect the desperation and innovative, albeit risky, approaches being taken in the face of limited housing options.

Stagnant Housing Growth Amidst Population Increase

Official statistics paint a stark picture of Lanzarote’s housing supply. In 2021, the island had 79,092 homes, a modest increase of just 10,000 units over two decades. This contrasts sharply with the rapid growth experienced between 1991 and 2001, when the number of homes more than doubled from 30,000 to nearly 70,000. While the population has continued to rise,the housing stock has remained relatively stagnant,creating a significant imbalance.

Interestingly, the distribution of housing growth is uneven across the island. While arrecife has seen an increase of 6,000 homes in the last 20 years, the municipalities of Haría and Tinajo actually had fewer homes in 2021 than in 2001, according to the National Statistics Institute (INE). This suggests a concentration of development in certain areas, potentially exacerbating housing shortages in others.

Furthermore, a significant number of homes remain unoccupied. The 2021 census revealed that one in four homes on Lanzarote – over 20,000 in total – were vacant, with 3,000 of these located in Arrecife. This raises questions about the efficient use of existing housing resources and the potential for bringing these vacant properties back into the market.

The Social Housing Deficit: A Growing waiting List

The scarcity of affordable housing has led to a surge in demand for social housing.Currently, over 2,300 families are on the waiting list for public housing through the Canary Islands Government’s Ministry of Housing. This number continues to grow,highlighting the urgent need for increased social housing provisions.

However, the supply of social housing remains woefully inadequate. In the first 22 years of this century, only 112 homes have been allocated to individuals registered in the Public Registry of Protected Housing applicants across the entire Canary Islands, not just Lanzarote. This stark figure underscores the systemic challenges in providing affordable housing for those who need it most.

To put this in perspective, Spain’s social housing park accounts for just 2.5% of the total housing stock, while the European average is 9.3%. In the Canary Islands, social housing represents less than 1% of the total, highlighting a significant disparity and a critical need for investment in this sector.

Desperate Measures: Conversions and Segregation

Faced with limited options, residents and authorities are exploring alternative solutions, frequently enough resorting to unconventional measures. In 2024, the College of Architects of Lanzarote reviewed 67 projects involving the conversion of commercial premises, garages, warehouses, and offices into residential units. This reflects a growing trend of repurposing existing spaces to address the housing shortage.

Additionally, the Arrecife City Council has acknowledged a surge in requests for segregation licenses, which allow for the division of single properties into multiple smaller units. While this can increase the number of available homes, it also raises concerns about potential overcrowding and the quality of living conditions.

A Call for Action: The Deputy of the Common’s Report

In 2023, the Deputy of the Common issued a report titled The situation of housing in the Canary Islands from a social perspective, which highlighted the social and economic context of enormous difficulty and called for political action committed, consensual and with the participation of all social agents. The report emphasized the urgent need for a complete and collaborative approach to address the housing crisis.

The pillars, such as roof and food, have been put by clouds

Regrettably, the report’s recommendations have yet to be fully implemented. The Deputy of the common’s office has continued to receive complaints related to evictions, delays in rental assistance, and the overall shortage of public housing, indicating that the situation has only worsened. The report itself stated that reality forces to redefine the most appropriate public intervention strategies to respond to one of the main social challenges, with a special incidence on situations of greater vulnerability.

The report concluded that the implementation of a housing policy in the Canary islands, truly effective, that guarantees the right of access to decent housing to the entire population, and especially to the most vulnerable sectors is unplayable. This underscores the critical need for immediate and decisive action to address the housing crisis in lanzarote and the wider Canary Islands.

Island Under Pressure: Housing Shortage Reaches Critical Levels

lanzarote, a jewel of the Canary Islands, is grappling with a severe housing crisis that threatens its economic stability and the well-being of its residents. The scarcity of affordable housing is not a new issue,but recent developments suggest the situation has reached a critical point,impacting various sectors from tourism to public services.

The Voices of Concern: A Chorus of Frustration

Across Lanzarote, a growing chorus of voices is expressing deep concern over the housing situation. From labor unions to tourism employers,the message is clear: the lack of affordable housing is a significant impediment to economic growth and social stability.

Alejandro Domínguez, the new island secretary of CCOO, has made addressing the housing crisis a central pillar of his agenda, emphasizing the need for social policies that ensure access to housing for working people.

César Reyes, island secretary of UGT, highlights the tangible impact on the labor market. He notes that some job openings remain unfilled as prospective workers from outside the island cannot find suitable accommodation. As an example, Reyes points to a hotel in puerto del Carmen undergoing renovations, forced to house construction workers on-site due to the lack of available housing options.

There are job offers that have not covered themselves because workers come from outside and do not find a house.
César Reyes, island secretary of UGT

Susana Pérez, manager of the Tourist Employers Association Asolan, echoes this sentiment, stating that the housing shortage is “a handicap that makes it difficult to find employment” across all sectors, including tourism and even public employment.

Public Sector Strain: Essential Services at Risk

The housing crisis is also impacting essential public services. pedro Viera, an island director of the Government, acknowledges that the shortage of housing is a recurring concern raised by social Security personnel, as well as security forces. While officials often manage to find housing eventually, the initial struggle is a deterrent. The upcoming addition of 50 new police officers further exacerbates the problem.

Carmen Pellón, insular director of the Canarian government, notes that while officials and teachers frequently enough pass on housing to each other, the underlying problem of scarcity remains.The lack of affordable housing options could potentially deter qualified individuals from accepting positions on the island.

A State of Emergency: The Human Cost

Elsa Betancort, of the Platform for Housing in Lanzarote, paints a stark picture of the situation, declaring that “lanzarote is in a true emergency.” She emphasizes that basic necessities like housing and food are becoming increasingly unattainable for many residents. Even individuals earning a relatively decent salary of €1,600 per month struggle to make ends meet due to exorbitant housing costs.

Lanzarote is in a true emergency. The most significant pillars,such as roof and food,have been put by clouds. If you have to pay a house, even with a salary of 1,600 euros you don’t reach the end of the month.
Elsa Betancort, Platform for Housing in Lanzarote

Betancort warns of an impending “avalanche of evictions” and highlights the growing number of people living in substandard conditions, including overcrowded apartments, garages, and informal settlements.She criticizes the perceived inaction of the Housing director of the Canary Islands government, who reportedly stated that solutions are limited without new construction.

Personal Accounts: the Struggle for Shelter

The crisis is particularly acute for newcomers to the island. Maite (a fictional name), an Argentinian who has lived in other parts of Spain, shares her experience of searching for housing in Lanzarote. Despite working remotely and being able to afford a reasonable rent, she faced numerous obstacles, including demands for excessive security deposits and restrictions on pets. After a difficult search through online portals and agencies, she eventually found a room in a shared apartment with an elderly woman.

Proposed Solutions and Political Actions: A Patchwork Response

Political responses to the crisis have been characterized by a mix of announcements and limited concrete action. Proposed solutions include land advertisements in the general plan of Arrecife (which is yet to be approved) for building homes, soil assignments, and the purchase of houses in Playa Blanca for social rent. Though, critics argue that these measures are merely “patches” that offer little immediate relief.

The situation demands a comprehensive and urgent response, including increased investment in social housing, streamlined planning processes to facilitate new construction, and measures to regulate short-term rentals that contribute to the housing shortage. Without decisive action, Lanzarote risks undermining its economic prosperity and social cohesion.