EU Affordable Housing Act to Empower Cities to Restrict Short-Term Rentals

The European Commission has introduced the Affordable Housing Act, a legislative proposal designed to give local authorities across the 27-nation bloc greater power to regulate short-term rental platforms like Airbnb. The act, unveiled on Wednesday in Brussels, outlines specific conditions under which cities can impose limits on short lets, aiming to mitigate the housing crisis exacerbated by tourism. Housing Commissioner Dan Jorgensen stated that short-term rentals are 'a part of the problem in many cities.' The proposal responds to growing concerns that holiday rentals reduce the availability of long-term housing and drive up prices, a claim disputed by rental providers. Many global cities, including New York, Tokyo, and Barcelona, have already attempted restrictions, often facing legal challenges due to unclear rules. The Affordable Housing Act seeks to provide legal clarity and protection, ensuring local measures comply with EU single market regulations. The act now requires negotiation with the European Parliament and member states before becoming law.