European regulators are preparing to address the growing impact of short-term rentals on housing availability across the continent, a challenge particularly acute in popular tourist destinations. the European Commission plans to introduce new measures by the end of 2026, aiming to strike a balance between the economic benefits of platforms like Airbnb and the need to ensure long-term housing for residents. while a complete ban is off the table, the proposed “Housing Plan” will likely empower local authorities to regulate short-term rentals and mitigate their effect on increasingly stressed housing markets.
European regulators are preparing new rules to address the impact of short-term rentals on housing availability, particularly in popular tourist destinations. While an outright ban on short-term rentals isn’t planned, the European Commission intends to introduce measures to protect areas facing significant housing stress. The move comes as cities grapple with dwindling long-term housing options due to the rise of platforms like Airbnb.
The regulatory proposal, slated for formal presentation by the end of 2026 as part of the EU’s “Housing Plan,” will focus on limiting the negative consequences of short-term rentals without prohibiting them entirely. European Commissioner for Energy and Housing, Dan Jørgensen, outlined the forthcoming legislation during a hearing before the European Parliament’s Hous committee, chaired by Irene Tinagli.
“We cannot stand by while residents are pushed out of the housing market in the places where they were born or where they would like to live,” Jørgensen stated. The proposed law will not aim to ban rentals of less than 30 days, but will introduce limitations designed to mitigate their impact on local housing markets.
The Commission plans to identify areas experiencing “housing stress,” where short-term rentals account for a substantial portion of the housing supply – in some cases, as much as 20%. Regulations will be tailored to these specific areas, with a focus on cities like Florence, Venice, Naples, Rome, and Milan in Italy, where the issue is particularly acute. Local authorities, including municipalities, will be empowered to implement measures to limit the negative effects of tourist rentals while preserving their benefits.
Potential measures include capping the number of nights a property can be rented annually. Another possibility being considered is requiring owners to offer properties for student housing during the off-season. The legislation will also seek to differentiate between professional hosts and individuals renting out properties to supplement their income, aiming to level the playing field with traditional lodging providers like hotels, who are subject to stricter regulations regarding safety and consumer protection. Changes to Italy’s budget law taking effect in 2026 will also contribute to these efforts.
The Commission is also planning to clarify the distinction between professional and non-professional hosts. This distinction is intended to prevent unfair competition with established hospitality businesses and ensure consistent standards for safety and consumer protection. The upcoming regulations reflect a broader European effort to balance the economic benefits of tourism with the need to maintain affordable housing for residents.
