Figures from the college of architects in the Balearics (COAIB) point to the degree to which the building of new homes has slumped compared to what it was some 20 years ago. Licence approvals from 2003 to 2007 were considerably higher than they are now, the peak having been reached in 2006, when 15,838 new homes were approved. The most recent year for which these figures are available is 2023, when there were 3,292.
In 2013, the licences granted were below 1,000; 986 to be exact. An explanation for the steep fall is pretty obvious. In the years up to 2007 there was a housing boom. Then came the financial crisis. Recovery stuttered in 2015, but eight years later it was still way lower than was required. The developers association has calculated that over 17,000 new homes are needed at present. And this is a number for a standard family and so doesn't take into account couples or single people.
However, the boom and crash don't provide a full explanation. Sandra Verger, CEO of the Balearic Builders Association, argues there has been no one "specific cause" for the slump. But she nevertheless points out that recovery from the financial crisis meant a focus on "high-income housing". There was a lack of available land. Where it was available, the land was very expensive. Town hall planning procedures didn't help. As mainly large houses were being given permission, it was difficult for homes to be affordable.
Verger believes there should have been a tax stimulus - lower taxes for building affordable housing. She still believes this. Meantime, the price of building materials has risen sharply. All these factors continue to motivate the building of homes for people with high purchasing power.
Despite the apparent obstacles, Verger insists that the only way to address the lack of housing is get more homes onto the market. One way of doing this would be to expedite the processing of developable land. At present, this can take a staggering length of time - up to 15 years - when the aim should be to start building as soon as possible.
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It stands to reason that small houses are proportionately more expensive to build than large ones. In a high demand area short-term lets have higher margins than long term. In a desirable area with fixed supply wealthy buyers are able to outbid lower income purchasers. So why all the surprise?
No doubt the anti-tourists protestors will blame tourists for this as well.