European Commission proposes new rules to curb short-term rentals and housing crises

On September 9, 2026, the European Commission introduced the Affordable Housing Act to help member states manage housing shortages in high-pressure areas. Proposed by Energy and Housing Commissioner Dan Jørgensen and Executive Vice-President Teresa Ribera, the initiative provides local and regional authorities with legal tools to restrict short-term rentals, such as Airbnb, for properties that are not the owner's primary residence. Primary residences are expected to remain exempt from these new regulations.

The policy aims to address the concerns of over 50% of European city residents, who identify housing affordability as an urgent issue. Beyond residential availability, the Commission noted that housing shortages hinder labor mobility and educational opportunities, thereby negatively impacting overall European competitiveness. The framework establishes a clear methodology for authorities to define areas under "housing pressure" while ensuring that local interventions comply with European single market rules.

This proposal marks a significant step following existing city-level restrictions in locations like Paris, Barcelona, and Venice. The act is not currently in force; it must now undergo the legislative process, requiring review and approval by the European Parliament and the Council of the European Union before it can be implemented.