EU Affordable Housing Act to Curb Airbnb Short-Term Rentals in Europe

EU Commission Vice-President Teresa Ribera is expected to present an Affordable Housing Act next Wednesday that would harmonize rules across Europe on short-term rental platforms such as Airbnb. The move comes after Paris, Barcelona, and Venice took independent action against vacation rentals, and following an alarm raised in mid-August by the European social services federation Eurodiaconia over the continent's housing crisis.

From One Room to Entire Buildings

Airbnb's original model was straightforward: homeowners rented out a room or two to supplement their income while providing affordable accommodation to tourists. That model quickly expanded. Landlords began listing entire properties on the platform, since short-term vacation rentals generate far more revenue than long-term leases. The result: shrinking housing supply in tourist hotspots such as Prague, Florence, and Berlin. A Miami high-rise with 643 units serves as an extreme example — about 85 percent of its apartments are investor-owned Airbnb properties. At the end of August, Miami ordered an immediate halt to illegal vacation rentals in the building.

What the EU Draft Proposes

The EU draft sets out when a stressed housing market justifies restrictions, using the ratio of property prices to local incomes as a key indicator. Authorities would also be required to consider population growth and supply-demand dynamics. Proposed measures include rental caps and tenant-protection rules. The Commission has indicated these are preferable to outright bans, and that any restrictions must be non-discriminatory, proportionate, and in the public interest. The industry lobby group CCIA, which represents Airbnb, warned against disproportionate restrictions, arguing the law would harm both property owners who rent out a room and regions that depend on tourism.

Next Steps

The EU draft will still need approval from member states and the European Parliament. Countries including Spain, Portugal, and the Netherlands have already introduced their own national measures. The Commission's unified framework aims to create a level playing field and prevent regulatory fragmentation across the bloc.