EU proposes to curb Airbnb and short-term rentals amid housing shortage

The European Union is proposing new regulations to curb short-term rental services like Airbnb, with the aim of tackling affordable housing shortages in popular tourist destinations. Cities such as Paris, Barcelona, and Venice have individually imposed restrictions on these platforms. To standardize these measures across Europe, the EU plans to present the Affordable Housing Act on September 9.

The draft legislation introduces criteria for determining when housing shortages warrant limits on short-term rentals. Authorities will assess housing stress using factors like the price-to-income ratio, changes in this ratio over time, population growth, and patterns of housing supply and demand. The price-to-income ratio compares the cost of purchasing a home to household earnings.

Any imposed restrictions must be non-discriminatory, proportionate, and serve the public interest. In regions grappling with housing shortages, quantitative limits or grandfathering rules may prove more effective than outright bans on property acquisitions or rentals. The proposal must undergo review by EU countries and the European Parliament before becoming law.