The financialisation of short-term rentals in Barcelona: Property ownership and the consolidation of a new asset class

Abstract

The formation of asset classes is a core feature of financialisation. As investors continually seek novel revenue streams, they develop mechanisms to transform a growing array of goods and services into tradable, income-generating financial assets. Over the last decade, short-term rentals have consolidated as a distinct asset class, facilitated by digital platforms such as Airbnb and supported by property managers who offer investor confidence and predictable returns. This article draws on extensive fieldwork conducted in Barcelona to examine how ownership within the short-term rental market is structured and understand the investment strategies of different owner types. Our findings demonstrate an increasing consolidation process, marked by corporate acquisitions, regulatory arbitrage and the transformation of hotel stock into short-term rental units. Conversely, individual investors, who are primarily multi-property holders rather than resident homeowners, continue to play a significant role in the market. We argue that, in the context of the financialisation of rental housing, short-term rentals have evolved into investment vehicles offering relatively stable and foreseeable returns. Institutional investors, including real estate investment trusts, leverage short-term rentals to diversify portfolios and meet long-term return expectations, while individual investors employ short-term rentals both to generate rental income and to store capital in appreciating real estate assets. We suggest that the consolidation of short-term rentals as an asset class is contributing to deepening inequalities, as it channels wealth towards investors while excluding renters and first-time property buyers. These dynamics raise critical questions about housing equity, regulatory capacity and the evolving role of cities in governing asset-driven urban development.