For numerous decades, Tenerife has been grappling with a steadily escalating housing crisis, particularly in its southern regions, an area profoundly altered by the influx of tourism. The growth of the tourism sector has significantly heightened the demand for accommodation, resulting in rapid expansion of holiday rentals. This trend, far from being solely economic, has had significant social and urban consequences. The increasing trend among property owners to convert their properties into holiday rentals, driven by the more lucrative returns compared to long-term rentals, has sharply diminished the availability of affordable housing for local inhabitants.
The president of the Cabildo de Tenerife, Rosa Dávila, has recently voiced her worries regarding the surge in the number of holiday homes, remarking that “it is exceedingly challenging for Tenerife to manage the volume” of these properties. Her statements are based on statistics which reveal that in recent months, there have been 5,000 new applications for this type of accommodation, adding to the existing 22,000, a growing figure that severely distorts the market for residential rentals. This scenario has sparked concerns over housing accessibility for local residents, particularly in the southern areas most impacted by tourism, such as Adeje or Arona.
According to the Federation of Hospitality and Tourism Entrepreneurs, comparing the years 2017 to 2024, the Canary Islands have welcomed an additional 1.3 million tourists, marking a 14% increase. However, the rise in the usage of traditional tourist accommodation, such as hotels and apartments, has been negligible, with an increase of merely 0.3%. This indicates that the majority of new visitors are opting for holiday rentals, exacerbating the housing crisis in areas like southern Tenerife.
In an effort to address this situation, Dávila has suggested implementing a moratorium on the registration of new holiday homes. She argues that the “influx” of registrations, spurred by alterations in the regional government’s Holiday Home Law (which is also endorsed by CC and PP), has overwhelmed the administrative capacities of the councils to regulate these properties, particularly in the southern part of the island. The proposed moratorium aims to contain what many perceive as one of the primary contributors to the housing crisis in the region.
“40% of rental homes have vanished”
Conversely, the Canary Islands Holiday Rental Association (ASCAV), based in Adeje, challenges this perspective. Its president, Doris Borrego, emphasises that the housing crisis in the Canary Islands primarily stems from “the inadequate construction of affordable housing for the local populace and the legal uncertainties affecting the traditional rental market.” According to ASCAV, “40% of rental homes have vanished due to legal uncertainties, and while 20% have been redirected to holiday rentals, the majority of properties have either been sold or taken off the market,” she contends.
The association also highlights the lack of foresight in urban planning, particularly in tourist municipalities, where population growth has not been matched by an adequate provision of housing for local workers. Data from the National Institute of Statistics (INE) indicates that the Canary Islands have over 211,000 vacant homes, and public housing constitutes a mere 1% of the total, significantly below both the national and European averages. For ASCAV, these figures provide a clearer picture of the housing crisis than the recent surge in holiday homes.
Meanwhile, Javier Cabrera, president of the Círculo de Empresarios y Profesionales del Sur de Tenerife, maintains, in comments to this publication, that “traditional housing rentals are not entirely profitable,” prompting many homeowners to pursue holiday rentals due to the “restrictions imposed by the State Housing Law. Legal uncertainty – Cabrera asserts – has weakened confidence in conventional rentals, compelling many property owners to revise their strategies.”
CONFLICTS OF COEXISTENCE
The representative of employers also emphasises the necessity to regulate tourist and residential areas distinctly, as both cater to varying life dynamics. While local residents require stability for employment, tourists tend to operate at more “accelerated” paces, resulting in conflicts of coexistence, particularly in tourist municipalities.
The southern part of Tenerife, heavily reliant on tourism and with limited advancements in policies regarding affordable housing, has faced a considerable challenge for a prolonged period and is on the rise. Although the tourism sector has played a role in reducing unemployment in the region, with a decrease of nearly 6,000 job seekers over the past year, according to official figures, the housing crisis continues to persist and deepen. The interplay between the growth of tourism, the increase in holiday rentals, and the scarcity of housing solutions for local residents has exacerbated this intricate issue.
