7 Countries Where Nomads Raise Housing Pressure, Studies Say
The digital nomad movement has transformed from a niche trend into a global phenomenon affecting housing markets worldwide. The number of digital nomads worldwide has reportedly grown substantially, with estimates reaching into the tens of millions by 2024, with the population growing at an incredible rate of 18% annually. This massive surge in location-independent workers has created unexpected consequences in destinations that once welcomed these high-spending visitors. Local communities now face rising rents, gentrification pressures, and housing shortages as nomads compete with residents for the same properties.
Portugal – Lisbon’s Rental Crisis Deepens
Portugal was among the most popular destinations for digital nomads in 2023, with around 16,000 digital nomads already living in the Portuguese capital Lisbon alone. The impact on housing has been severe and measurable. With tens of thousands of digital nomads competing for the same housing stock as locals, rental prices rose 10% in 2023 alone. House prices in Portugal have doubled since 2015, according to the International Monetary Fund, with many observers saying the country is facing a housing crisis where prices far outstrip incomes. Digital nomads enjoy salaries significantly higher than locals, requiring at least €2,800 per month to get the special visa, compared to just over half of all workers who earn less than €1,000.
Spain – Barcelona’s Housing Supply Transformation
Housing demand by foreign remote professionals has risen by 42% in Barcelona according to recent reports, following Spain’s Digital Nomad Visa introduction in 2023. More than 7,000 Digital Nomad Visas have been granted in Barcelona to date, driving sustained demand for furnished rentals in central, well-connected locations. The rental market shows clear strain indicators. Average rental prices in Barcelona represent a 9.27% increase from €24.17 to €26.41 per square meter compared to 12 months ago. Long-term rental stock has steadily declined over the past five years, leaving fewer options for residents seeking traditional leases, while the supply of seasonal and mid-term rentals preferred by foreign remote workers has increased notably, especially in central districts favored by digital nomads.
Netherlands – Amsterdam Implements Strict Rental Limits
Amsterdam has experienced significant rental increases, driven by the shortage of housing supply. The city has seen a surge in short-term rentals as digital nomads settle there, contributing to housing shortages and increased rental prices, as well as strains on local infrastructure. Amsterdam has responded with aggressive regulation measures. The city introduced measures to limit the number of days per year that properties can be rented out to foreign nationals and cracked down on illegal short-term rentals, with hosts now only able to rent out their properties for a maximum of 30 nights per year, requiring permits for anything above this. Cities like Amsterdam have also banned cruise ships and implemented new housing rules to increase the housing supply for locals.
Indonesia – Bali’s Infrastructure Overwhelmed
In 2023, Bali attracted millions of visitors, significantly exceeding its population of approximately four million, with overcrowding becoming rife, including long traffic queues, beaches strewn with litter, bars and restaurants packed to the rafters, and public facilities becoming overwhelmed. The Indonesian island exemplifies how digital nomad hotspots face infrastructure pressure beyond just housing. One of the impacts of overcrowding is that it puts urban infrastructure under immense pressure, affecting everything from utilities like sewage and electricity, to supply lines for food and medicine, and of course the availability of housing. Because digital nomads often earn higher wages than local people, landlords and business owners capitalize by raising their prices, and while these price hikes may be affordable for digital nomads, they end up impacting local residents, who are in turn ‘squeezed out’ of their own local economy.
Colombia – Medellín’s Rental Market Transformation
According to Nomad List, these workers’ top 21 “Most Liked Places in Latin America” include Medellín, and in a post-pandemic world, an ongoing migration of remote workers has brought financial benefits to places like Medellín, a city that has seen significant economic improvement since the 90s. However, the housing pressure is becoming evident. According to the online property platform Propertai, in the high-income barrio of Laureles, rent prices increased by 80% in the first four months of 2023. AirDNA noted that listings on both Airbnb and Vrbo platforms jumped by 45% to 12,372 in June, up from 8,532 the year before. Luis Miguel Pelaez, a partner at rental real estate company Acrecer, believes the growing trend of delisted rental properties in Medellín is connected to owners wanting to take advantage of short-term leases, and has observed that rents are rising while the average stay for tourist rentals has increased from about one to two weeks to two to three months.
Mexico – Capital City Housing Competition Intensifies
In 2022, Mexico City signed an agreement with Airbnb to support tourism in marginalized areas, however residents took to the streets in protest, alleging the company contributed to ongoing displacement and gentrification, leading former Mayor Claudia Sheinbaum to engage in talks with 10 cities in the U.S. and Europe to better understand measures authorities took to regulate temporary rentals. The pressure on housing markets continues to mount. Mexico City tackles rising rent and gentrification from digital nomads, aiming to regulate rents, create affordable housing, and manage short-term rentals. Highly skilled workers moving to Latin America bring with them salaries that can push for more development but also put at risk the daily economic development of locals, and in the short run, local housing markets are impacted as digital nomads rent longer-term lodgings that would otherwise be occupied by locals.
South Africa – Cape Town Faces “Modern Colonisation” Claims
Data collected by the National Low Income Housing Coalition through estate agents in Cape Town shows that remote workers are willing to pay between R25,000 and R30,000 a month in rent for a one-bedroomed apartment, while the median monthly salary earned by many locals is R5,500, meaning such housing is unaffordable for them. Many owners are choosing to advertise their properties for short-term rentals on platforms like Airbnb, reducing the availability of long-term housing options for locals, and Cape Town reportedly has tens of thousands of active short-term rental listings, surpassing cities like Florence and Berlin. A petition initiator told the Mail & Guardian that besides rent drastically increasing and the general housing crisis, living and spending time in the CBD has become overly expensive. The country introduced a digital nomad visa in 2024 which requires visitors to register with the revenue service and pay South African tax on their earnings, allowing foreigners to live and work remotely for up to 36 months with a minimum gross income equivalent to R650,976.
The global digital nomad movement continues reshaping housing markets across continents, forcing governments and communities to balance economic benefits with local housing needs. What began as a remote work trend has evolved into a permanent shift affecting millions of residents worldwide.
