The European Commission wants to tighten the rules for Airbnb and short-term rentals

On Wednesday, the European Commission proposed the European Union’s first common framework for interventions in areas affected by the housing crisis, a measure that could lead to new restrictions on Airbnb and other short-term rental platforms. The initiative aims to harmonize European rules, after cities such as Paris, Barcelona, and Venice have already introduced their own limits on tourist rentals.

The Commission argues that the growth of this sector reduces the supply of housing available to residents and contributes to rising prices, triggering protests in several European cities.

Airbnb shares fell by 2.5% after the announcement.

Under the proposal, authorities will be able to identify areas facing severe pressure in the property market based on common criteria, such as a high ratio between housing prices and household incomes or price increases over the past ten years. Any restrictions will have to be justified by evidence, limited to the affected areas, and not applied retroactively. The final decision will rest with the competent authorities.

The proposal must be negotiated with the member states and the European Parliament before it can become law.

Airbnb says that the main problem is the housing shortage and calls for investment in construction, renovations, and the use of unoccupied properties.

The Commission also recommends making more land available for construction and simplifying urban-planning procedures.