Spain and Mexico back more curbs on holiday apartment letting

Spain and Mexico are the latest countries to limit short-term housing rentals in the wake of growing public anger around the world over surging rents and wider long-term accommodation shortages.

In an October ruling, the Supreme Court in Madrid upheld Spanish residents’ rights to curtail short-term letting of apartments.

That decision followed Mexico City telling landlords that they cannot let out properties short-term for more than 50% the days of the year. The Mexican capital's announcement is aimed at countering price rises in the wider or long-term rental market and what city officials labelled "unfair competition" for "traditional" hotels.

The Spanish court decision came after several cases and appeals, including one from Marbella that saw residents complain about "noise, destruction, theft, the smell of marijuana, urine and stains" from apartments that had been let out to tourists.

There have in recent months been protests in several regions of Spain against perceived overtourism, while cities such as Malaga have opened public campaigns to try to rein in excesses such as littering and tourists loitering around town in swimming or beach wear. Barcelona in June proposed a ban on short-term letting after residential rents climbed by almost 70% over the past decade.

Public anger in Europe has surged over issues such consumer price inflation, which worsened the financial challenges faced by hard-pressed renters, and migration, which has added to the accommodation and housing shortages in some host countries such as Ireland, where authorities have been subsidising hotels and apartments to take in arrivals.

In 2023, officials in countries including Austria, France, Germany, Italy and the US introduced or proposed limits on short-term Airbnb-style housing or apartment rentals.

Airbnb has pushed back, however, last month calling on New York city officials to reconsider "unprecedented" limits imposed on the sector in September last year.