EU Proposes New Rules Allowing Cities to Restrict Short-Term Rentals
The European Commission proposed a unified framework allowing local authorities to restrict short-term rentals via platforms like Airbnb to combat the worsening housing crisis.
The European Commission presented a dramatic proposal granting local authorities across the European Union a broad legal basis to impose restrictions on short-term rentals on platforms such as Airbnb, Booking, and Expedia. The move aims to help cities cope with the worsening housing crisis across the continent, establishing the first unified framework of its kind.
Under the proposal, cities will be able to designate areas facing housing market pressure based on metrics including the ratio of real estate prices to resident incomes, and subsequently restrict vacation rentals or the acquisition of properties intended for such use. European Commission President Ursula von der Leyen stated, "I promised to address housing accessibility in Europe. Today we are taking a step in this direction by providing certainty and support to local authorities."
This initiative could heavily impact highly sought-after tourist destinations. In 2025, approximately 952 million nights were booked in vacation rentals across the EU, with such apartments accounting for up to 20% of the housing stock in peak destinations. This comes against the backdrop of a roughly 60% surge in EU housing prices since 2010.
Conversely, CCIA Europe, an organization representing platforms including Airbnb, criticized the proposal, arguing that "Europe will not solve the housing crisis by handing restriction tools to authorities without independent oversight." The proposal must undergo negotiations and secure approval from the European Parliament and EU member states before entering into force.
