EU law will tighten rules on Airbnb and short-term lets in Germany

The European Commission has proposed a new law aimed at curbing Airbnb and other short-term rental companies in Germany, addressing the country's affordable housing crisis. Vice President Teresa Ribera presented the Affordable Housing Act, which seeks to regulate these short-term let companies and reduce the housing stress in specific areas.

Local authorities would gain more power to regulate short-term lets and acquire properties in areas facing housing stress. A common methodology for assessing housing stress and procedural requirements will be introduced for the first time. Before implementing restrictions, local authorities must demonstrate that short-term lets have reduced affordable housing availability in the region over the past three years.

Germany's existing rent brake law, which limits rental prices to 10% above the legal rent index in areas with housing stress, does not apply to properties built after 2014 or short-term lets. Germany's affordable housing situation is worsening, with high demand for short-term lets and growing concerns about the ability to afford rent.

A Rent Report 2026 by the German Tenants’ Association found that half of all residents fear they won't secure a home. The welfare state is increasingly required to intervene as housing becomes a poverty risk. Germany's social housing units have reached a record low, falling from 2.3 million in 2007 to 1.05 million in 2024.