What's Happening?
The European Commission is addressing the impact of short-term rental platforms like Airbnb and Booking.com on housing affordability across Europe. In December 2025, the Commission introduced the European Affordable Housing Plan and is now working on a legislative
proposal set for late 2026. This initiative is part of the broader European Housing Strategy. The proposed regulations aim to empower local and regional authorities to implement specific measures in areas identified as 'under housing stress,' typically urban zones or tourist hotspots where short-term rentals significantly impact the housing market. Measures may include caps on the number of nights a property can be rented annually and seasonal rules encouraging long-term rentals during off-peak times. The proposal also distinguishes between professional and non-professional hosts to ensure fair competition and consumer protection.
Why It's Important?
The proposed regulations are significant as they aim to balance the economic benefits of tourism with the need for affordable housing. Short-term rentals have been linked to increased housing costs and reduced availability for long-term residents, particularly in popular tourist destinations. By allowing local authorities to implement targeted measures, the EU seeks to mitigate these effects while maintaining the economic and cultural benefits of tourism. The initiative also addresses broader issues such as rising construction costs and speculative pressures that exacerbate housing shortages. The proposal's focus on data transparency and consumer protection could lead to a more equitable rental market, benefiting vulnerable groups like young people, students, and essential workers.
What's Next?
The legislative process for the new regulations will continue until late 2026, with input from various stakeholders, including platforms, hosts, operators, and housing advocates. The outcome could significantly reshape the short-term rental market across the EU, promoting a fairer and more open system. As the proposal progresses, it will be crucial to monitor how local authorities implement the measures and their impact on both the tourism industry and housing affordability. The success of the initiative will depend on its ability to balance these competing interests effectively.
