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Southern Europe and Ireland hit hardest by air tourism-driven housing crisis, T&E study finds
Unchecked growth in tourism, facilitated by air traffic growth, is fueling an unaffordable housing crisis across Europe. Some of the most popular destinations like Spain, Portugal, Italy and Greece, have seen protests from residents in the high-season summer months, often due to the strain on affordable housing.
A new study by the New Economics Foundation (NEF), and commissioned by T&E, reveals that the average annual rents in five of Europe’s largest tourism-dependent economies are projected to rise by up to €250 per year over the next five years (2026-2031) as a consequence of incoming air tourism. These rises will primarily affect lower-income households, as income fails to keep pace with rental costs.
In absolute terms, Ireland is expected to see the largest rise, facing a rent increase of €250 per year. In relative terms, Greece, Portugal, and Spain are forecasted to see the largest increases, with rent price rises between €160 – €220.¹
