Barcelona, a premier Spanish holiday destination, has announced a significant policy shift to ban apartment rentals to tourists by 2028. This dramatic measure seeks to address the city’s escalating housing costs and enhance livability for its residents.

The announcement, made on Friday by the city’s leftist mayor, Jaume Collboni, signals a major effort to tackle what he described as Barcelona’s most pressing issue. The new policy will see the cancellation of licenses for the 10,101 apartments currently approved for short-term rentals by November 2028.

“We are confronting what we believe is Barcelona’s largest problem,” Mayor Collboni stated at a city government event, highlighting the severe impact of short-term rentals on the local housing market.

The boom in short-term rentals has had a pronounced effect on Barcelona’s housing affordability. Over the past decade, rents in the city have surged by 68%, while the cost of purchasing a home has increased by 38%. This sharp rise has made it increasingly difficult for many residents, particularly young people, to find affordable housing. Collboni pointed out that this has become a significant driver of inequality in the city.

While national governments often appreciate the economic benefits of tourism, Spain being among the top three most visited countries globally, the local implications can be severe. In some areas, gentrification and a preference for lucrative tourist rentals have priced out local residents. This issue is not unique to Barcelona; similar restrictions on short-term rentals have been implemented in places like the Canary Islands, Lisbon, and Berlin over the past decade.

Spain’s Socialist housing minister, Isabel Rodriguez, expressed her support for Barcelona’s decision. “It’s about making all the necessary efforts to guarantee access to affordable housing,” she posted on X (formerly Twitter).

However, the decision has not been universally welcomed. Barcelona’s tourist apartments association, APARTUR, criticized the move, arguing that it would increase poverty and unemployment. They also warned that the ban could lead to a rise in illegal tourist apartments.

Hotels in Barcelona are expected to benefit from this new policy. During the period from 2015 to 2023, the opening of new hotels in the city’s most popular areas was banned by a far-left party that was governing at the time. However, Mayor Collboni has indicated that he might relax these restrictions. Despite this, Barcelona’s hotel association has refrained from commenting on the new announcement.

Mayor Collboni emphasized that the 10,000 apartments currently used for short-term rentals would be made available for local residents or placed on the market for rent or sale. This move is intended to increase the availability of affordable housing for the city’s residents.

Barcelona’s local government has committed to maintaining a stringent inspection regime to detect and prevent illegal tourist apartments once the ban is implemented. In recent years, no new tourist apartments have been approved in the city. Since 2016, the local government has ordered the shutdown of 9,700 illegal tourist apartments and has reclaimed nearly 3,500 apartments for primary housing for local residents.

This decisive action by Barcelona reflects a broader trend seen across Europe, where cities are grappling with the dual pressures of maintaining tourism revenues and ensuring affordable housing for their residents. The move to ban tourist apartment rentals is seen as a necessary step to prevent further exacerbation of housing inequalities and to make the city more livable for its long-term residents.

The impact of this policy will likely extend beyond housing. By potentially reducing the number of tourists staying in short-term rentals, the city’s character and daily life might also see significant changes. Local businesses that cater primarily to tourists might feel the effects, while those that serve the resident population could see a resurgence.

Barcelona’s bold decision to end tourist apartment rentals by 2028 is a strategic move aimed at addressing the city’s severe housing crisis and ensuring a higher quality of life for its residents. As the city navigates this transition, the enforcement of the new policy and its impact on both the local housing market and the tourism industry will be closely watched. This development highlights the ongoing tension between preserving the benefits of tourism and maintaining affordable, livable urban spaces for residents.

This story was originally featured on CNN