Housing crisis in Mallorca forces residents into caravans

In Mallorca, the high cost of living and housing scarcity are forcing residents into precarious living conditions. Begoña, a 60-year-old woman earning 1,200 euros per month, lives in a four-meter-square caravan with her 22-year-old son, Héctor. After losing their home in 2022, the pair moved into the caravan to avoid homelessness, paying 250 euros monthly for a plot. The settlement lacks basic amenities such as water and electricity.

Local residents report that the tourism industry has driven rental prices to levels that exceed average local wages. Begoña noted that single rooms are being offered for 1,400 euros, more than her total monthly income. High entry barriers, including requirements for large deposits and several months of rent in advance, further prevent workers from accessing the market. Data from Engel & Völkers indicates that average rental prices in Palma have risen by over 4% in the last year, with small apartments costing approximately 970 euros per month.