EU to crack down on short-term rentals in bid to slash housing prices

The European Commission is taking steps to curb the impact of short-term rentals on housing affordability in Europe's popular cities. The Affordable Housing Act, set to be approved on Wednesday, grants local governments the authority to implement targeted measures in areas experiencing housing shortages. Commissioner Dan Jørgensen emphasized that while short-term rentals do not cause Europe's housing crisis, they exacerbate the problem in many major cities.

Short-term rentals currently make up around 1.2% of the EU's housing stock but can account for up to 40% of available rental units in some central European cities. Industry groups have argued that restrictions could harm tourism-dependent economies and homeowners who rely on rental income, but Jørgensen dismissed these concerns, stating that housing is a right and not just a commodity.

The legislation will enable local authorities to identify housing-stressed areas and decide on appropriate interventions. Jørgensen emphasized that the goal is not to impose restrictions from Brussels but to help cities, regions, and countries facing immediate housing challenges. He warned that failing to address the crisis could lead to a loss of trust in democratic institutions and the rise of extremist political forces.