Lanzarote’s Housing Crisis: Campervans Become a Living Solution

Lanzarote, a popular Canary Island destination, is grappling with a severe housing crisis. Over the past four years, average property prices have surged by 40%, reaching €2,655 per square meter. This drastic increase is impacting a wide spectrum of the island’s residents, including workers, small business owners, and even public sector employees whose salaries are no longer sufficient to afford housing.
For some, residing in converted vans, campervans, or caravans within car parks in tourist areas has become a necessity. The island’s acute housing shortage coupled with escalating rental prices have left many with no other viable options. A recent survey conducted by Lanzarote’s Data Centre, operated by the cabildo, revealed that housing challenges now represent the “main concern” among residents.
The Rising Cost of Living and Its Impact

Property prices have risen dramatically since January 2021, pushing people from diverse backgrounds into alternative living arrangements. One individual, originally from England but raised in Lanzarote, returned to the island last year to launch a DJ and event organizing business. Despite earning €1,600 per month, he was unable to find a rental property for less than €1,200 monthly.
After a month in Airbnb accommodation at €70 per night, he resorted to purchasing and converting a van into a living space. His self-sufficient home includes a kitchen, shower, a 140-liter water tank, and 400-watt solar panels. This resident has now been living in a car park for six months.
Tourism’s Role in the Crisis
Lanzarote’s escalating cost of living is further intensified by the booming tourism sector. The latest data from the Canary Islands’ Tourism Rental Survey indicates a surge in available beds in holiday rental properties, with 36,384 currently available on the island – an increase of 11,000 over the past four years. In 2024 alone, Lanzarote recorded a historic high of 3.2 million tourists. In stark contrast, the last social housing development on the island was completed in 1994.
Authorities have responded by implementing new regulations, such as banning caravans from certain areas. In Puerto del Carmen’s Playa de Los Pocillos car park, once frequented by over 20 parked caravans, local council signs now restrict access to private cars and motorcycles only. While this has dispersed the vans, their residents remain on the island.
Personal Stories of Struggle and Adaptation
Among those affected is a pensioner who has resided in his van for three and a half years in Costa Teguise. Having previously worked as a head pastry chef in a well-known hotel, he moved from Jerez to Lanzarote over 40 years ago. Following a divorce and struggles with depression, he found himself without stable housing. Despite his challenges, he credits regular swimming at a local sports center for helping him regain a sense of purpose: “Now, I want to live again.”
Others continue to struggle with the rising costs of housing. One hotel worker rents a large caravan for €800 per month, while some locals are even renting out caravans to tourists as alternative holiday accommodations.
In various locations across Lanzarote, the number of people turning to vehicle-based living continues to grow. Antonio, a 64-year-old pensioner, has lived in his Renault Kangoo for several years at Costa Teguise’s Las Cucharas beach car park. Nearby, a yoga instructor made the choice to live in a caravan after her rent was more than doubled by her landlord, from €350 to €800, following the COVID-19 pandemic. “I choose not to waste my money on rent,” she says.
Similarly, an employee of a water supply company, faced with the realities of the current housing market, bought a caravan rather than renting a home. With monthly payments of €650 for the next seven years, he cannot afford additional housing costs. For many in Lanzarote, adapting to van life is no longer a choice but a necessity, as the island’s housing crisis continues to push residents towards unconventional solutions.