EU Draft Law Seeks to Curb Airbnb and Short-Term Rentals in Housing Crunch Areas
EU plan would let cities limit short-term rentals like Airbnb in areas with housing stress, using price-to-income ratios and other indicators.
The European Commission is preparing new rules that would allow cities and regions to impose restrictions on short-term home rentals, including platforms like Airbnb, as part of a broader push to ease Europe's affordable housing crisis.
The draft proposal, scheduled to be presented by Commission Vice-President Teresa Ribera on September 9, aims to harmonise how national and local authorities respond to housing shortages worsened by the rapid growth of holiday rentals. It would need approval from EU member states and the European Parliament before becoming law.
The plan follows years of grassroots protests in tourist-heavy cities such as Paris, Barcelona, and Venice, where residents — particularly younger Europeans — have struggled to find affordable homes as landlords convert apartments into short-term lets.
Under the proposed Affordable Housing Act, authorities would be able to justify curbs on short-term rentals only if they can demonstrate "housing stress" in a given area. The draft suggests using the price-to-income ratio — comparing the cost of buying a home with local earnings — along with its growth over time, as a key indicator. Officials would also need to consider population growth, housing supply and demand trends, and whether the stress is likely to persist.
Any restrictions must be non-discriminatory, proportionate, and serve the public interest. The draft notes that quantitative caps or "grandfathering" rules — allowing existing operators to continue under old regulations — may be more suitable than outright bans on property purchases or use.
The proposal complements an EU data-sharing regulation that took effect in May, requiring short-term rental platforms to provide governments with information on listings to help identify non-compliant properties.
Industry groups, including the CCIA whose members include Airbnb, have cautioned against overly aggressive measures. They argue that without enforceable proportionality checks, the law could harm homeowners who rent out a room for extra income and regions dependent on tourism.