Europe reconsiders the cost of short-term rentals

Housing crises in various European cities are putting short-term rentals on platforms such as Airbnb in the spotlight. The European Commission has proposed new measures that would give local authorities more tools to tackle housing pressure, including the possibility of restricting short-term rentals in areas where they affect the availability of residential homes.  

The proposal is part of the Commission's Affordable Housing Act presented on the 9th of September.  

But, for housing advocates, the issue is not just about regulating platforms. Jaume Artigues, member of the Housing Commission at the Federation of Neighborhood Associations of Barcelona (FAVB) says: “If you continue allowing a significant share of the housing stock to disappear from the regulated market, you are not solving the problem”. 

“Just as there have been European laws that have promoted the free market, they are now realising that they have created a very serious problem,” Artigues said. 

The Commission's proposal is not just about banning all short-term rentals. The local authorities would need to demonstrate that an area has a lot of housing pressure before being able to introduce restrictions. The proposal also distinguishes between occasional hosts and commercial operators managing multiple properties.  

Barcelona's case 

One example of tourist accommodation restrictions is Barcelona. The city's City Hall has announced that it will not renew the licenses that were given before the law was approved when they expire. This measure is taken with the objective of returning those properties to the regular residential market. 

But the pressure on housing is not only about the number of tourist flats. For many residents, the bigger concern is how much of their income goes towards keeping a home. 

The Commission's proposal would give other European cities more room to take similar action, depending on the level of housing pressure of the area.  

As Europe considers new rules, the question is not only how many short-term rentals are in a city, but whether residents are able to afford to live in their city.