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The European Commission is preparing to introduce new legislation to help member states grappling with severe housing shortages curb holiday home rentals, such as Airbnb.

Holiday rentals have become a legal battleground between tourism operators and local authorities seeking to ease pressures on the housing market. These disputes often drag on for years without definitive outcomes, according to the Financial Times.

The upcoming EU legislation, known as the Affordable Housing Act, will establish criteria that cities and regions can rely on to implement proportionate measures aimed at alleviating these housing pressures, according to sources familiar with the discussions.

Short-Term Rentals Account for 1.2% of EU Housing

Although holiday rentals account for merely 1.2% of the total housing stock across the European Union, this percentage spikes significantly in certain popular tourist destinations.

According to the European Commission's Joint Research Centre, holiday rentals can make up to 20% of total housing in hotspots such as Sorrento in Italy, Dubrovnik in Croatia, and Fuerteventura in the Canary Islands.

Local authorities assert that the proliferation of holiday rentals exacerbates housing shortages and drives up prices for local residents, while rental platforms continue to deny these accusations.

European Cities Impose Restrictions on Tourist Apartments

In recent years, major cities including Amsterdam, Berlin, Brussels, Florence, and Paris have already taken proactive measures to restrict short-term rentals in an effort to protect their local housing markets.