BARCELONA‘S permanent rental market has crashed by a fifth despite a fierce crackdown wiping out a third of the city’s seasonal ‘loophole’ lets.
The Catalan government introduced strict housing decrees earlier this year to stop property owners using seasonal contracts to bypass national rent controls.
But instead of returning those properties to the permanent market, landlords are simply pulling their homes from the market entirely.
It means the supply of long-term rental housing in the Catalan capital plummeted by 22% in the third quarter of 2026 compared to last year, according to newly released data from property portal idealista.
The regional legislation did succeed in its primary target, slashing the number of seasonal lets in the city by 37%.
However, because the total pool of available housing has shrunk so drastically, these temporary lets still make up an astonishing 57% of all active rental advertisements in Barcelona.
READ MORE: Spain’s long-term rental home listings plunge 44% since 2018 – and 83% in Barcelona
Francisco Iñareta, a spokesperson for idealista, warned that government intervention ‘continues to generate scarcity wherever it is applied’.
He added that the drop in seasonal lets was ‘not translating into an increase in the available supply of permanent rentals’, leaving tenants with fewer options than ever.
The rental squeeze is not limited to Catalunya, with long-term housing supply falling by 10% across Spain as a whole.
Major expat hotspots that have not introduced rent caps are also suffering, with permanent rental supply falling by 22% in Alicante, 12% in Valencia and 11% in Malaga.
San Sebastian remains the city with the highest proportion of seasonal lets, making up 62% of its entire rental market.
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