The European Commission has proposed new measures that would give cities across the bloc greater authority to limit short-term rentals such as Airbnb, in a bid to ease the housing crunch gripping many popular tourist destinations. The plan, unveiled on Wednesday as part of a broader affordable housing package, responds to what Commission Vice-President Teresa Ribera called a “terrible crisis” in housing affordability.
“When the market fails to deliver something as fundamental as an affordable home, public authorities have a responsibility to act,” Ribera said in a statement accompanying the proposal.
The initiative comes as data from the EU shows that nearly 10% of people living in European cities spend more than 40% of their disposable income on housing. In places like Lisbon, Barcelona, and Prague, residents have long blamed platforms like Airbnb for shrinking the pool of long-term rental properties and driving up prices, sometimes forcing locals to relocate to cheaper areas.
Targeting commercial operators, protecting homeowners
Under the proposed rules, cities would be allowed to impose restrictions only in areas where there is clear evidence of serious housing pressure. The Commission is particularly focused on commercial operators who run multiple properties as holiday lets, rather than individuals occasionally renting out their own home.
The proposal would enable local authorities to target professional multi-property operators, while safeguarding the right of residents to rent out their primary residence. This distinction aims to strike a balance between the economic benefits of tourism and the need to preserve residential communities.
EU data from 2024 shows that short-term rental activity across four major letting platforms grew by 93% between 2018 and 2024, underscoring the scale of the phenomenon. The Commission’s plan is part of a wider effort to address housing affordability, which has become a pressing political issue in many member states.
However, the Commission acknowledges that restricting short-term rentals and second homes alone cannot solve Europe’s structural housing shortage. Other challenges include high construction costs, expensive land, planning restrictions, and lengthy permit processes.
The proposal will now be discussed by the European Parliament and the Council of the EU. If adopted, it would give cities a new tool to manage the impact of tourism on local housing markets, while leaving room for tailored solutions at the national and municipal levels.
For a broader look at how European cities are tackling urban challenges, see Athens' e-scooter crackdown and Brussels' earlier moves on short-term lets.
