La Orotava Housing Crisis Deepens as Rental Costs Outpace Local Incomes
A 2024 study reveals a critical housing crisis in La Orotava, where surging rental costs have forced families to spend 42% of their income on housing while local government efforts to implement rent controls remain stalled.
A real estate study commissioned by the La Orotava City Council at the end of 2024 reveals that the town’s housing crisis has reached a critical point. The report highlights a significant gap between housing costs and what residents can afford, leaving the municipality in a financially unstable position.
The most striking finding is the "effort rate" required for rent: families must spend 42% of their income to rent a 100-square-meter home. This is well above the 30% threshold typically considered sustainable. In contrast, buying a home requires 21% of a family's income. This disparity stems from trends between 2019 and 2023, during which rental prices surged by 67.9%, while local incomes grew by only 22.9%.
The report breaks the municipality into six districts, revealing uneven pressure. The Bebedero-Pinolere-Aguamansa and Chasna areas have seen the sharpest rent hikes—129% and 53%, respectively. In Bebedero-Pinolere-Aguamansa, residents must now spend 70% of their income on rent, highlighting a severe disconnect between market prices and local wages.
The crisis is worsened by an aging housing stock and a lack of new construction. In 2023, 95% of property sales involved second-hand homes. Nearly half of all existing houses were built before 1982, and there is a mismatch between the current supply—mostly large, three-bedroom homes—and the needs of smaller, modern households. Additionally, while the total population has remained stable, the number of households is growing by 1.1% annually, partly due to an increase in foreign residents.
Three years ago, the local government unanimously voted to ask the Canary Islands government to declare La Orotava a "stressed area," which would allow for rent controls. However, that request remains stalled, leaving the town without the legal tools to intervene.
Looking ahead, urban planners have identified space for 5,554 potential new homes, but fewer than 1,000 are considered viable in the short term. Projects like San Antonio, which aims to build 742 homes with half reserved for official protection, are currently on hold pending the approval of a new General Urban Development Plan. For now, the City Council has provided no clear timeline or strategy to address a situation that continues to make housing increasingly unaffordable for residents.