Full Breakdown
EU Proposes New Rules to Curb Short-Term Rentals in Tourist Hotspots
9/10/2026, 1:10:11 AM
Core Proposal and Mechanism
The European Commission unveiled an “Affordable Housing Act” giving city and local authorities the legal basis to limit short-term holiday rentals and to restrict the purchase of properties intended for such letting in areas identified as under “housing stress.” An area must meet criteria such as a high price-to-income ratio and a three-year record of adverse effects on housing affordability or availability. The draft protects landlords who rent out their primary residence for short periods while targeting commercial operators who run multiple properties as holiday lets.
Background & Context
Rapid growth in platforms such as Airbnb has been linked by residents and officials to a shortage of affordable long-term homes in popular destinations. Cities including Paris, Barcelona, Venice, Lisbon and Prague have already introduced local limits, but many of those measures have faced court challenges that left authorities uncertain about their legality under EU single-market rules. The new EU framework seeks to harmonise rules across member states and provide “legal certainty” for municipalities wishing to act.
Data & Statistics
- EU data from 2024 shows that nearly 10 % of people living in EU cities spend more than 40 % of their disposable income on housing.
- Short-term rentals account for about 1.2 % of the EU’s total housing stock, reaching up to 20 % in the most touristic locales.
- House prices have risen roughly 60 % since 2010, while rents have increased about 30 % over the same period.
- Eurostat reports that in 2025 guests booked 952 million nights in EU short-term accommodation, with Paris recording 26.3 million, Rome 18.8 million, and Barcelona 13.2 million overnight stays.
Official Statements & Responses
Commission Vice-President Teresa Ribera described the situation as a “terrible crisis” and argued that when the market fails to provide affordable homes, public authorities must act. Commission President Ursula von der Leyen said the proposal is “one step” toward fulfilling her promise to tackle Europe’s housing affordability problem. Housing Commissioner Dan Jorgensen stated that “short-term rentals are a part of the problem in many cities.” An Airbnb spokesperson countered that “Europe’s housing crisis needs structural solutions, and the implementation of this act should focus on increasing the supply of homes.”
Criticism & Opposition
The lobbying group CCIA Europe, whose members include Airbnb, warned that the draft fails to provide independent scrutiny or effective redress for restrictions. Its head of policy Alexandre Roure argued that without such safeguards the proposal would remain a “paper tiger,” leaving disproportionate limits in place and undermining the legal certainty the Act is meant to provide.
Why It Matters
If adopted, the framework could curb the conversion of long-term housing into short-term tourist accommodation, potentially easing price pressure for residents in high-demand cities. Tighter limits may affect tourism revenue streams and could prompt legal challenges from rental platforms seeking to protect their business models. The balance between protecting affordable housing and sustaining tourism will shape the policy’s long-term effectiveness.
Verbatim Quotes
- “Without independent scrutiny or effective redress, this proposal will remain a paper tiger, leaving disproportionate restrictions in place and undermining the legal certainty the Affordable Housing Act is meant to provide,” — Alexandre Roure
- “Short-term rentals are a part of the problem in many cities,” — Dan Jorgensen, the 27-nation bloc’s housing commissioner
- “Europe's housing crisis needs structural solutions, and the implementation of this act should focus on increasing the supply of homes,” — an Airbnb spokesperson
