Cities in Europe may soon gain more authority to restrict short-term tourist rentals if such practices are putting pressure on local housing stock.
The European Commission has presented a draft Affordable Housing Act that includes provisions allowing authorities to designate areas experiencing housing stress and implement targeted measures to protect housing affordability. Short-term rentals are a key element of this proposal.
This move comes as popular European destinations face rising housing costs and concerns that homes are increasingly being used for tourist accommodation rather than long-term living.
Under the proposed system, authorities will be able to impose restrictions in zones deemed to be under housing pressure. Decisions will be based on factors such as housing availability, demographic trends, and the balance between housing supply and demand. Furthermore, the measures must be proportionate and non-discriminatory.
It is important to note that these proposals do not imply a blanket European ban on Airbnb or other forms of short-term rental. Instead, they aim to grant cities and other bodies greater latitude where tourist accommodation is considered a cause of local housing pressure. The European Commission emphasizes that short-term rentals also bring economic benefits to communities and tourism, so the goal is to find a balance between tourists, hosts, and residents.
The EU has previously introduced new transparency rules for short-term rentals. Starting May 20, 2026, new regulations require more thorough data collection and exchange from hosts and online platforms, providing authorities with better information on the sector.
The issue of regulation is not limited to Europe. Cape Town is also considering tightening short-term rental rules. A proposed local law for Cape Town in 2026 requires the registration of affected properties and could potentially classify them as commercial housing if they are used for short-term rentals for more than half a year. The goal of this initiative is, among other things, to encourage properties to return to the long-term rental market.
The Cape Town Taxpayers' Association welcomed the principle of regulation but questioned whether the proposed measures are sufficient to increase the supply of long-term housing.
For travelers, the changes may ultimately lead to varying rules depending on the destination, especially in cities where housing shortages and tourist demand put pressure on residential neighborhoods.
The European Commission's proposal is part of broader efforts to address the housing crisis on the continent. The Affordable Housing Act is expected to create a framework for authorities to respond to local housing issues while preserving the economic benefits of tourism.