The price of rents in Palma, Majorca’s largest city and capital, have gone through the roof, with only 0.2 percent of properties available for less than 900 euros (£749) per month.

In fact, there are no rental properties available for less than 600 euros (£499.35) per month, according to the real estate platform, Fotocasa.

The 900-euro limit was set by the Balearic government to help young people - between the ages of 18 and 35 - benefit from the Bono Alquiler Joven 2024, government cash to help people rent a property.

One of the requirements for applying for the public aid is that the maximum amount of rent for the property does not exceed 900 euros. In more economical regions this is 600 euros.

At a national level, according to the real estate portal’s October data, only six percent of the housing offer for rent is below 600 euros and 31 percent is below 900 euros.

In addition to Palma, other cities including Pamplona, San Sebastian and Vitoria also have no properties available to rent for under 600 euros. On the mainland, Barcelona only has 0.1 percent of flats available, with Madrid at 0.3 percent and Valencia at 0.4 percent.

However, some cities do have considerably more properties available for less than 600 euros, including Palencia with 55 percent, followed by Ciudad Real with 52 percent and Jaen with 48 percent. Zamora has 37 percent, Lugo with 36 percent and Badajoz with 30 percent.

María Matos, Director of Studies and spokesperson for Fotocasa, said: “If the aim is for the Bono Joven to reach those who need it most, it would be necessary to review and extend the monthly payment limit, as the average rental price in Spain already exceeds 1,000 euros.

“Therefore, a large number of young people will not be able to apply for it because their rent exceeds 600 euros or 900 euros, depending on the autonomous region in which they live”.

He added: “If we take into account the significant increase in the cost of renting, we can see that there are fewer and fewer homes on the market that are offered for 600 euros or 900 euros.”

The Majorca housing crisis, and in the wider Balearic Island region, is not a new topic. A report by the Economic and Social Council found that only one in three foreigners who bought a home in the Balearics in 2023 were residents of the region.

A worryingly large number of people are now living on the streets in Palma, as growing numbers of working residents in Majorca cannot afford skyrocketing rents.

Marga Plaza, coordinator of the Cruz Roja (Red Cross) social emergency unit said: “Those affected have jobs but the difficulty they have is access to housing, due to its rising cost or the difficulties in meeting increasingly demanding requirements from owners."

It was reported in July that increasing numbers of low-paid service workers, crucial to the tourism industry, have been forced to live in caravans and makeshift homes as a result of a rising cost of living and increased property prices.

In Palma, prices to rent single rooms, not even a whole flat, are extortionate. According to the Majorca Daily Bulletin, a single room now expects prices of around 600 euros (£502), while a three-bedroom flat costs 1,600 euros (£1,339).