The Malta Independent 27 July 2026, Monday
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ADPD highlights social cost of economic growth

Saturday, 10 January 2026, 15:44 Last update: about 8 months ago

Rental rates are rising continuously, placing a heavy burden on many households, ADPD The Green Party said Saturday. A study published this week by Solidarjetà, the renters' association, confirms that increasing numbers of people have no alternative but to rent. Many do not qualify for bank loans, while others face financial difficulties following separation or divorce. Low-income workers are also excluded from the property market. ADPD-The Green Party says this situation reflects the negative social impact of the country's current economic model.

Speaking outside the Housing Authority in Floriana, Chairperson Sandra Gauci and spokesperson Mina Jack Tolu warned that economic growth is coming at a high social cost. Large numbers of homes are being converted into tourist accommodation, reducing the supply of long-term residential housing and weakening community life. At the same time, population growth driven by imported labour has increased demand for rentals, while infrastructure such as roads and sewage systems is under severe strain. The government, they said, is now struggling to contain a crisis of its own making.

Short-term rentals, including Airbnb-style accommodation, are a major factor behind the housing shortage and soaring rents. Although the Housing Authority states that housing costs should not exceed 25 percent of income, fewer than 25 percent of rentals meet this standard. About 40 percent of tenants spend between 25 and 30 percent of their income on rent, while another 40 percent face an even heavier burden. This speculation is pushing people toward homelessness, especially those who narrowly miss out on housing benefits, face rent increases, or lose their tenancy.

The rapid influx of foreign workers has further intensified demand. Some owners have converted second homes into rentals, while others engage in abusive practices, overcrowding tenants into small spaces. Although government guidelines exist, enforcement is weak, allowing abuse to continue and prices to rise.

Rental prices remain largely unregulated and are often set arbitrarily. There is no system that links rents to factors such as property size, energy efficiency, or access to services. ADPD argues that the government is reluctant to act decisively, as many landlords have profited from the situation and form an important voting bloc.

Despite the growing profitability of the rental market, the party insists that the right to decent and affordable housing must take precedence. Stronger regulation and tenant protections are urgently needed to restore fairness and social stability.


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