The EU is preparing a framework that could allow cities facing housing shortages to restrict short-term rentals, while stopping short of an automatic ban on Airbnb or similar platforms. The proposal aims to improve access to long-term homes, but could also reduce options for people who need temporary accommodation.
The European Commission’s Affordable Housing Act would establish a common approach to identifying areas under housing stress and assessing when local restrictions are justified. The document remains a proposal and must receive approval from the EU Member States and the European Parliament.
Restrictions would target areas with housing shortages
Housing demand outstrips supply in many European cities, with particular pressure in tourist destinations, capital cities, islands and neighborhoods where apartments frequently serve short-stay visitors.
Under the proposed framework, local authorities could limit the number of short-term rental properties or set conditions for registering new accommodation on rental platforms. In some cases, municipalities could also restrict purchases of second homes intended for tourist rentals rather than permanent residence.
Authorities would need to demonstrate that short-term rentals had significantly harmed housing availability or affordability for at least three years before imposing restrictions. Measures would have to be evidence-based, necessary, proportionate, transparent, non-discriminatory and limited in time.
Restrictions would target specific areas with documented problems, rather than apply across a city or country without sufficient justification.
One possible reference point for housing stress is an average home price eight times higher than a resident’s annual income. That measure alone would not determine whether an area qualifies: authorities would also consider population trends, housing supply and demand, and how long the difficulties have persisted.
The proposed approach would exclude owners who occasionally rent out their primary residence for a short period. It would not automatically overturn restrictions that cities already have in place.
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Temporary stays could become harder to find
For Ukrainians living in the EU under temporary protection, short-term rental platforms can provide accommodation after arrival, during a move or while waiting for documents and permanent housing.
Restrictions could leave fewer properties available for stays of several days or weeks. Temporary accommodation could become more expensive, and searches during the tourist season could take longer. People who urgently need housing without committing to a long-term contract could face the greatest difficulties.
At the same time, owners who stop renting to tourists may move their properties into the long-term market. That could expand options for residents, students, workers and foreigners with temporary protection.
The effects would vary by location. Limits in one district could increase the supply of long-term homes, while those in another could reduce access to affordable temporary accommodation. Municipal decisions, rather than an "EU rental ban", would determine what changes locally.
More homes would not guarantee lower rents
An increase in long-term rental supply could slow rental-price growth, but a rapid decline in rents is not guaranteed.
Housing costs also depend on construction, household incomes, demand from students and workers, migration, interest rates and broader economic conditions. The European Commission stresses that restrictions on short-term rentals cannot resolve the housing crisis alone.
Countries and cities would also need to expand affordable, social and student housing, use existing buildings more effectively, and simplify planning and permit procedures.
Owners could face additional registration requirements
Property owners renting to tourists may face limits on registrations, permit requirements or restrictions on homes that are not their primary residence.
Unified digital registers of landlords and short-term rental properties may also be introduced in the future. Such systems could help authorities monitor compliance, tax payments and whether rental activity is legal. They could also allow tenants to check whether an owner is authorized to rent a property.
Greater transparency could reduce unofficial listings and make it harder for fraudsters to advertise someone else’s apartment or offer a property without permission. It would not eliminate every risk.
Warning signs would still include unusually low prices, demands for urgent transfers, refusal to join a video call or claims that a contract is unnecessary because of "special platform rules".
For tenants and owners alike, the practical consequences will depend on which restrictions individual municipalities adopt. The proposal’s central aim is to make long-term housing more accessible, but its effect on availability and prices will differ across local markets.