Airbnb: EU paves the way for new restrictions on short-term rentals

Presented as part of the European Affordable Housing Act, the text does not impose a general ban across the EU. Instead, it aims to provide local authorities with a common legal basis to act when tourist rentals, vacant homes, or certain uses of second homes reduce the housing available to residents.

According to the Commission, an area may be considered under housing pressure based on indicators such as a high ratio of housing prices to income or a persistent rise in prices over several years. Any restriction must be data-driven, limited to the affected territory, necessary, and proportionate to the intended objective.

For short-term rentals, authorities will need to demonstrate that this activity significantly contributes to the reduction of supply or the deterioration of affordability. Measures cannot be applied retroactively and must take local circumstances into account, according to principles detailed by the European executive.

The proposal comes as housing has become a major concern in many European cities. The Commission notes that more than half of urban residents see housing as an immediate and urgent problem. Since 2013, housing prices have risen by over 60% in the EU and rents by about 20%, while short-term rentals have increased by 93% between 2018 and 2024.

A European framework without a general ban

Brussels aims to harmonize a regulatory landscape that has become highly fragmented. Paris, Barcelona, Venice, and other tourist destinations have already adopted distinct rules to limit or regulate short-term rentals, leading to several legal disputes over their compatibility with European law.

The new framework is intended to allow authorities to maintain control over their housing policies while reducing legal uncertainty. The decision to impose restrictions will remain at the national, regional, or local level: the Commission cannot force a city to limit Airbnb or other platforms.

Airbnb has challenged the proposed approach. The company argues that priority should be given to building, renovating, and bringing vacant homes back to the market rather than imposing new limits on tourist rentals. Airbnb’s stock fell by about 3% during Wednesday’s session following the Commission’s announcement, according to Reuters.

The debate over rental platforms is already intense in several member states. In Spain, Airbnb had notably been fined 64 million euros for listings of prohibited properties, a precedent illustrating the growing number of national and local rules that the new European text seeks to better regulate.

The European Parliament and member states still need to decide

The Commission also recommends speeding up the availability of land, simplifying certain urban planning and construction procedures, and promoting renovation to increase housing supply. The European Affordable Housing Act must now be negotiated with the European Parliament and the Council before it can come into force.