EU plans new legislation to curb Airbnb’s impact on the housing crisis

The EU has identified short-term rental platforms like Airbnb, TripAdvisor, and Expedia as a primary cause of the affordable housing shortage in Europe.

According to a draft of an upcoming housing plan seen by Euractiv, the European Commission will propose new legislation on short-term rentals next year, aiming to limit their negative impacts while “preserving the benefits of short-term rentals.”

This initiative will be part of a broader housing package that combines closer scrutiny of short-term rentals with a review of EU state aid rules, intended to direct public funds toward housing projects.

The housing shortage has become a top political priority for the Commission, which appointed Dan Jørgensen as the first commissioner responsible for housing a year ago. The European Parliament has also established a special committee on the housing crisis.

In 2024, the EU adopted a regulation concerning short-term rentals to combat fraudulent listings and improve data sharing between authorities and platforms. This regulation is set to take effect in May 2026.

However, the draft housing plan, expected to be adopted by the Commission today (December 16), argues for stronger measures.

The draft states that approximately 70% of the growth in short-term accommodation platforms between 2019 and 2024 has reduced the availability of affordable housing for local residents. In some popular tourist destinations, short-term rentals account for 20% of the housing stock.

In this context, the draft plan proposes a new regulation for short-term rentals to harmonize standards and housing definitions across the EU, prevent unfair competition with traditional accommodation providers and small businesses, and strengthen consumer protection.

The draft also characterizes short-term rentals as “cross-border services,” arguing that different national rules lead to legal fragmentation across the bloc. It adds that current regulations create “unfair competition” with hotels and other providers that comply with EU safety, tax, and consumer protection rules, while consumer rights in short-term rentals remain “unequal and uncertain across borders.”