Multiple urban areas confront a shared crisis situation
Tackling Tourism-Induced Housing Shortages: Innovative Strategies from Around the World
In an effort to address the growing issue of housing shortages caused by tourism, cities worldwide are implementing innovative strategies to protect residential properties and ensure affordable housing for their citizens. This article explores some of these strategies, focusing on case studies from Gaspé, Baie-Saint-Paul, Îles-de-la-Madeleine, Lisbon, Barcelona, and Amsterdam.
In Gaspé, a region known for its picturesque landscapes and thriving tourism industry, the local authorities have taken steps to protect residential properties from conversion into short-term rentals. As a result, only primary residences can be rented out short-term, and buildings used for tourism purposes are now taxed at a commercial rate, which is 4.3 times higher than the residential rate. This strategy has led many owners to withdraw from the Airbnb market due to retroactive adjustments and hefty bills.
Similarly, in Baie-Saint-Paul, part of a former convent was renovated to house employees of local businesses, including Club Med Charlevoix. Furthermore, a $3.6 million partnership over two years aims to provide stable housing for foreign workers and fund the site's renovation.
In Îles-de-la-Madeleine, a five-story building project has been approved to house 60 apartments for employees of the Integrated Health and Social Services Center (CISSS) on the Islands. Additionally, owners of tourist rentals are now taxed at a commercial rate, three times higher than the residential tax.
Lisbon, Portugal, ended golden visas linked to real estate in 2023 and extended the moratorium on new tourist rental licenses in the most tourist areas. The municipality has also been buying back or reintegrating tourist apartments to offer them to residents at rents around 30% lower than the market.
Barcelona, Spain, is taking a bold step by cancelling approximately 10,100 licenses that allow a whole apartment to be rented to visitors by November 2028. The goal is to lower rents and curb speculation by freeing up these apartments for residents.
Amsterdam, too, has implemented measures to combat housing shortages caused by tourism. The city has banned the construction of new hotels unless it is accompanied by a closure elsewhere since 2024, and a reflection is underway to implement a tax on vacant homes.
These innovative strategies to combat housing shortages caused by tourism include converting tourist apartments into social housing, community-owned real estate programs, zoning reforms, and heritage preservation efforts. Research suggests that some owners of tourist apartments might be motivated to rent their properties as social housing if income stability is ensured, a move aimed at reducing housing pressure caused by platforms like Airbnb.
Programs like the Community Owned Real Estate (CORE) in Los Angeles demonstrate how acquiring commercial and residential properties community-wide can stabilize rents and preserve affordable housing for locals, a model that could be relevant for small tourist-dependent towns such as Gaspé, Baie-Saint-Paul, and Îles-de-la-Madeleine.
Community-led efforts in Montreal’s Chinatown to limit speculative development through zoning changes and heritage status help maintain affordable housing and local business stability. Similar strategies can be applied in European cities like Lisbon, Barcelona, and Amsterdam where historic neighborhoods face displacement due to tourism-related real estate pressures.
In conclusion, innovative strategies to combat the housing shortage from tourism combine market regulation, community-based housing initiatives, and adaptive reuse of tourist properties, tailored to the local context of each city or region. These strategies aim to ensure that tourism benefits the local community and does not exacerbate housing shortages and affordability issues.
- Incorporating community-led housing initiatives, such as the Community Owned Real Estate (CORE) model in Los Angeles, could potentially be applicable to small tourist-dependent towns like Gaspé, Baie-Saint-Paul, and Îles-de-la-Madeleine to stabilize rents and preserve affordable housing for locals.
- To enhance the lifestyle of locals and prevent gentrification in historic neighborhoods, communities in Montreal's Chinatown and European cities like Lisbon, Barcelona, and Amsterdam can adopt zoning changes, heritage preservation, and adaptive reuse of tourist properties, as part of their strategies to combat housing shortages and affordability issues caused by tourism.
