Spain’s Rental Crisis Deepens: One in Three Tenants Forced to Move as Affordability Pressures Grow
The cost of renting a home in Spain continues to rise, with new research suggesting that many tenants are being forced to move simply because they can no longer afford to stay where they live.
While the study covers Spain as a whole, the findings are particularly relevant to Lanzarote, where the shortage of long-term rental accommodation has become a major concern for residents and workers alike.
More Tenants Being Priced Out
According to new research from Spanish estate agency network donpiso, around one in three tenants moved to a different neighbourhood during the past year because they could no longer afford their rent. The report also found that around 40% of tenants moved home for financial reasons, highlighting the increasing pressure on household budgets.
The figures reflect a wider trend across Spain, where rental demand continues to outstrip supply, particularly in popular cities and tourist destinations.
Landlords Tighten Rental Requirements
Finding a rental property has also become more difficult.
The research found that:
- Around 70% of landlords now expect tenants to earn at least three times the monthly rent.
- Approximately 60% ask for additional financial guarantees, such as rental payment insurance or guarantors.
- Many landlords are placing greater importance on financial security than achieving the highest possible rent.
Demand for rental homes continues to far exceed supply.
The report suggests that a typical rental listing can attract hundreds of enquiries within the first couple of days, meaning many prospective tenants never even reach the viewing stage.
This level of competition has become familiar in parts of the Canary Islands, including Lanzarote, where long-term rental properties often receive significant interest shortly after being advertised.
What Does This Mean for Lanzarote?
Although the study looks at the national picture, the issues are particularly relevant for Lanzarote residents.
The island has experienced increasing pressure on the long-term rental market, driven by factors including:
- Limited housing supply.
- Strong demand from local residents and incoming workers.
- Growth in tourism and holiday accommodation.
- Rising property values across the Canary Islands.
Many businesses on the island have already reported difficulties recruiting staff because suitable long-term accommodation is increasingly difficult to find.´
Advice for Anyone Looking to Rent
If you’re searching for a long-term rental in Lanzarote, being well prepared can improve your chances.
Helpful steps include:
- Having proof of income readily available.
- Preparing recent payslips or employment contracts.
- Having identification and supporting documents ready before viewings.
- Responding quickly when suitable properties become available.
For landlords, the report also highlights the balance between protecting their investment while ensuring good tenants are not unnecessarily excluded.
The Bigger Picture
Spain’s housing market continues to face significant challenges, with demand for rental homes remaining well above available supply. In response, the Spanish Government has introduced a number of housing measures in recent years aimed at improving affordability and increasing tenant protections, although housing availability remains a key issue in many regions.
For islands such as Lanzarote, where housing availability has become an increasingly important issue for residents, employers and local authorities, the pressure on the rental market is likely to remain a major topic throughout the coming months.
