A new report from the Las Palmas College of Economists has thrown a spanner in the works of those calling for rent controls in the Canary Islands’ largest city. According to the study, the data simply doesn’t support classifying Las Palmas de Gran Canaria as a “strained market” under Spain’s housing law.
Why the report caused a stir
The controversy stems from the fact that the city council has been pushing the narrative that Las Palmas is under severe housing pressure, a position that could justify imposing rent caps. The College’s findings directly contradict this, and they’re not based on gut feeling – they’re grounded in official sources such as the Spanish National Statistics Institute (INE), the Canary Islands Statistics Institute (ISTAC), the General Council of Notaries, and the Ministry of Housing.
That last point matters. The Ministry’s rental price data come from income tax returns (Model 100) – declared rental income from landlords – rather than online asking prices. Notarial data, meanwhile, reflect the actual prices at which sales close, which the College says can be up to 26% lower than portal asking prices. By contrast, the municipal report relied heavily on figures from Idealista and Fotocasa, which even the portals admit are “asking” rather than “closing” prices and can be distorted by stale listings that never get removed.
A city that’s not growing – and not short of housing
The report paints a picture of a city whose population has been in gentle decline since 2011 – down 1.39% to date – while the province and the Canary Islands overall have grown around 50% in the last three decades. The College also points to an estimated 32,000 surplus homes in the city, including nearly 25,000 officially classified as vacant based on low electricity consumption. That leaves a differential of around 7,000 dwellings more than households – hardly a textbook shortage, though the authors stress that issues may exist in specific neighbourhoods.
What the College recommends
Rather than a blanket rent-control designation, the report calls for more granular, neighbourhood-level analysis of supply, demand, and price trends, alongside a closer look at vacant housing. It also suggests adapting urban planning rules to allow for the division of larger homes, as over half of Las Palmas households now consist of just one or two people.
In short, the authors argue that official, transaction-based data should guide policy – not just portal listings – especially when decisions affect thousands of small landlords who rely on rental income. Whether policymakers agree remains to be seen, but for now, the “strained market” label for Las Palmas appears on shaky ground.
