Spanish government says housing market is not a 'free for all' after recent crackdown on Airbnb

Key Points

• The Spanish government ordered Airbnb to remove 66,000 holiday rentals for violating local licensing rules, a move that Airbnb is currently appealing.
• Officials argue that the growth of Airbnb and other short-term rentals is one factor contributing to Spain’s housing affordability crisis, with a reported shortfall of 450,000 homes.
• Barcelona plans to close all 10,000 licensed short-term rentals by 2028 to safeguard housing supply for full-time residents amid rising rents and protests.
• Spain’s crackdown reflects a broader push to hold powerful tech companies accountable and balance economic activities like tourism with the constitutional rights of residents.

MADRID (AP) — Spain 's government wanted to send a message last month with its crackdown on Airbnb: that the Spanish economy and its housing market are not a “free for all" that value profits over the rule of law, a minister told The Associated Press on Tuesday.

The government ordered Airbnb to remove almost 66,000 holiday rentals from the platform which it said had violated local rules by failing to list license numbers, listing the wrong license number or not specifying the apartment's owner. Airbnb is appealing the move.

Spain is one of the world’s most visited countries. Last year, the Southern European nation of 49 million received a record 94 million international visitors.

But a housing affordability problem that is particularly acute in cities such as Madrid and Barcelona has led to growing antagonism against short-term holiday rentals. Airbnb is perhaps the best-known and most visible actor.

The Spanish government says the two are related: the rise of Airbnb and other short-term rental companies, and rising rents and housing costs.

“Obviously there is a correlation between these two facts,” Consumer Rights Minister Pablo Bustinduy told the AP. “It’s not a linear relation, it’s not the only factor affecting it, there are many others, but it is obviously one of the elements that is contributing.”

A recent Bank of Spain report said the country has a shortfall of 450,000 homes. In the tourist hot spots of the Canary and Balearic Islands, half the housing stock is tourist accommodations or properties owned by nonresidents, the report said.

“Tourism is for sure a vital part of the Spanish economy. It’s a strategic and very important sector. But as in every other economic activity, it must be conducted in a sustainable way," Bustinduy said. “It cannot jeopardize the constitutional rights of the Spanish people. Their right to housing, but also their right to well-being.”

The country has seen several large protests that have drawn tens of thousands of people to demand more government action on housing. Homemade signs including one that read “Get Airbnb out of our neighborhoods” at a recent march in Madrid point to the growing anger.

“A balance must be found between the constitutional rights of the Spanish people and economic activities in general," Bustinduy said.

Regional governments in Spain are also tackling the issue. Last year, Barcelona announced a plan to close down all of the 10,000 apartments licensed in the city as short-term rentals by 2028 to safeguard the housing supply for full-time residents.

Airbnb said that while its appeal goes through the courts, no holiday rentals would be immediately taken down from the site.

In response to Spain's order, Airbnb has said the platform connects property owners with renters but it doesn't have oversight obligations, even though it requires hosts to show that they are compliant with local laws.

Bustinduy said Spain's recent action reflects a desire in Spain, but also elsewhere, to hold tech companies like Airbnb to account.

“There is a battle going on about accountability and about responsibility,” Bustinduy said. “The digital nature of these extraordinarily powerful multinational corporations must not be an excuse to fail to comply with democratically established regulations.”

Bustinduy, who belongs to the governing coalition's left-wing Sumar party, dismissed the idea that the Spanish government's action toward Airbnb could discourage some tourists from visiting.

“It will encourage longer stays, it will encourage responsible tourism and it will preserve everything that we have in this wonderful country which is the reason why so many people want to come here," he said.

The minister also took a shot at low-cost airlines. Spain has pushed against allowing such airlines to charge passengers for hand baggage. Last year, it fined five budget airlines, including RyanAir and easyJet, a total of $179 million for charging for hand luggage.

“The principle behind these actions is always the same: preserving consumer rights,” Bustinduy said. “Powerful corporations, no matter how large, have to adapt their business models to existing regulations.”

___

Joseph Wilson contributed to this report from Barcelona, Spain.