In Europe's popular tourist destinations one in five homes are short term rentals
Cities across Europe have seen housing costs rise precipitously in recent years – far more than general inflation and feeding calls for intervention by authorities.
The problem has been exacerbated by low building rates and high demand from tourists, with properties often rented to holiday-makers rather than local residents. Various cities have already taken steps to ease the pressure – including a plan to ban Airbnb in Barcelona from 2028.
The need to tackle the issue at the EU level has long been acknowledged, with Dan Jørgensen made the inaugural housing commissioner in 2024. On Wednesday, Jørgensen unveiled the Affordable Housing Act, an initiative that puts online platforms directly in the crosshairs.
The new rules will provide national governments with a common methodology for identifying areas under “housing stress”, which will be calculated according to the price-to-income ratio of housing. Authorities can take action when this ratio is eight or higher, meaning that buying an average-sized home would demand savings equivalent to eight years of per-capita disposable income.
