EU Proposes New Rules to Curb Short-Term Rentals, Affecting Tourists
The European Commission has proposed new regulations that would grant cities and regions greater authority to restrict short-term property rentals, potentially impacting Israeli tourists seeking accommodation in popular European destinations. The initiative, presented on Wednesday, September 9, aims to address housing crises exacerbated by the significant number of properties used for short-term rentals via platforms like Airbnb, Booking, and Expedia.
Under the proposed rules, local authorities would be empowered to identify areas experiencing housing market pressure, considering factors such as property prices and income levels. Once designated, these areas could face stricter regulations on short-term rentals, including limitations on acquiring properties specifically for tourist accommodation. The goal is to increase the availability of housing for permanent residents and stabilize rental prices.
The European Commission's President, Ursula von der Leyen, stated that these measures would provide local governments with more tools to tackle housing affordability issues. The scale of the short-term rental market is substantial, with approximately 952 million overnight stays recorded in the EU in 2025, and in some tourist hotspots, up to 20% of housing stock can be dedicated to travelers during peak seasons.
While the new powers do not mandate a blanket ban on platforms like Airbnb, the specific restrictions will vary by city, potentially leading to diverse rental conditions across Europe. The tech industry, represented by CCIA Europe, which includes Airbnb, has voiced opposition, arguing that increased local control without sufficient oversight won't resolve the root causes of the housing crisis.
For tourists, the potential consequences include a reduced number of available rental apartments in high-demand cities, which could shift the balance between short-term rentals and hotels and affect overall travel costs. However, these rules are not yet in effect and must undergo further legislative approval by the European Parliament and EU member states before any limitations can be implemented.
