EU Commission drafts law letting cities curb Airbnb-style rentals

August 30, 2026 at 06:52 PM1 min

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The European Commission is drafting an affordable housing law to help EU cities restrict short-term rentals. The proposal would allow local authorities to limit apartment use through platforms like Airbnb. The move follows legal battles between tourism operators and local governments.

Key Facts

The European Commission is drafting a law to help EU countries limit short-term rentals, according to the Financial Times.
Short-term rentals account for only 1.2% of EU housing stock but reach 20% in Sorrento, Italy, and Dubrovnik, Croatia, per the Joint Research Centre.
Paris has introduced licensing and night limits, while Barcelona plans to end tourist apartment rentals by 2028.
EU property prices rose nearly two-thirds from 2015 to 2025, outpacing household income growth, Eurostat data shows.
Airbnb says strict restrictions would cause serious economic damage to cities without significantly affecting prices.

Draft Legislation

The European Commission is developing a bill to help EU states counter the effects of mass growth in short-term housing rentals. The Financial Times reported the proposal would allow cities and regions to impose restrictions on apartment use through platforms such as Airbnb. The short-term rental market has become an arena of protracted legal battles between tourism operators and local authorities.

Local Measures

Paris is introducing a licensing system and limits on the number of rental nights, while Barcelona plans to completely stop renting apartments to tourists by 2028. Many of these measures are being challenged in courts. Tourist town administrations argue that tourists are displacing the local population and causing sharp rises in housing prices.

Housing Crisis

According to Eurostat, EU property prices rose by nearly two-thirds from 2015 to 2025, outpacing household income growth. Airbnb representatives claim that strict restrictions will not significantly affect prices but will cause serious economic damage to cities.