The supply of long-term rental housing in the Canary Islands remains at historically low levels in 2025, with 40% fewer properties available than in 2021, according to the latest figures from the Rental Observatory of the Alquiler Seguro Foundation for the fourth quarter of the year. The data confirm that the structural shortage affecting the islands has not eased, despite signs of moderation in other parts of Spain.
Canary Islands: persistent shortage despite local differences
Although there are contrasting trends within the archipelago, the overall picture remains bleak. In Santa Cruz de Tenerife, the number of long-term rental properties increased by 6.3% compared with the previous year, while Las Palmas saw a further decline in supply.
In the latter case, Alquiler Seguro attributes the contraction partly to uncertainty surrounding the possible declaration of “high-demand areas,” which has discouraged some landlords from keeping properties on the long-term rental market. Even so, both provinces continue to operate with around 40% less rental stock than four years ago, underscoring the depth of the crisis.
National context: fewer homes, slower price growth
Across Spain, the supply of long-term rental housing fell by 4.7% in 2025, representing a loss of 33,418 properties in just one year. Barcelona led this decline and alone accounted for 34.7% of the total reduction in available rental stock nationwide, with 11,594 fewer homes on the market.
Despite the ongoing contraction in supply, rental price growth has begun to slow. At the end of 2025, the average monthly rent in Spain stood at €1,184, up 5.9% year on year. While still a significant increase, this represents a marked slowdown compared with the 11.3% rise recorded in 2024. Major urban markets such as Barcelona (€1,643), Madrid (€1,584) and Málaga (€1,269) continue to register the highest rents.
According to the report, this deceleration reflects a clear economic limit: tenants are now spending close to 40% of their net income on rent, a threshold that leaves little room to absorb further sharp increases.
Intense demand pressure remains
Demand for rental housing continues to far exceed supply. In 2025, an average of 135 people contacted each property that came onto the long-term rental market within the first ten days, compared with 124 contacts over the same period in 2024. This sustained pressure highlights the lack of effective relief in most markets.
Barcelona once again set a historic record, with 462 interested parties per property, confirming the city’s status as a fully saturated market. Other areas with particularly high demand included Girona (140), the Balearic Islands (137), Vizcaya (134), Las Palmas (121), Zaragoza (109), Tarragona (109), Valencia (104), Madrid (103) and Santa Cruz de Tenerife (102).
Pressure spreads beyond major cities
While large metropolitan areas remain under severe strain, the most pronounced rent increases in 2025 were recorded in provinces traditionally considered more affordable but now facing sharp drops in supply. Castilla-La Mancha (+12.5%), Cantabria (+8.2%), Extremadura (+8%), Castilla y León (+4.9%) and Galicia (+4%) all saw notable rises.
Alquiler Seguro notes that although rents in these areas remain below the national average and under the €900 threshold, the increases reflect a growing shortage that is now affecting markets previously seen as relatively balanced.
In some provinces, rising demand is linked to spillover effects from expensive metropolitan areas. Toledo and Guadalajara, both closely connected to Madrid, have seen a sharp rise in interest as tenants are priced out of the capital. Elsewhere, such as Girona and Tarragona, demand growth is driven by a mix of proximity to Barcelona, strong local economies and regulatory changes linked to the designation of high-tension rental zones.
A market still under strain
By the end of 2025, Spain’s long-term rental market comprised 683,920 properties, a figure that continues to decline year after year. In the Canary Islands, the persistence of extremely low supply combined with strong demand confirms that the rental market remains under severe strain, with no clear signs of a structural recovery in the short term.
