The European Union could tighten restrictions on Airbnb and other short-term rental companies under a new bill drafted by the European Commission, Sky News reported. The proposal would create an EU-wide system for assessing pressure in local housing markets.
Brussels hopes the centralized approach will address a long-standing shortage of affordable housing that has already triggered protests across Europe.
Several cities, including Paris, Barcelona and Venice, have already introduced their own restrictions on Airbnb in an attempt to manage the problem, moves that have led to a series of legal disputes.
How the new system would work
Under the proposal, a single EU-level approach would determine whether a specific area is experiencing housing market tension. Authorities would analyze the ratio between property prices and local incomes, and track the trend in housing demand growth over the past decade.
The document also calls on authorities to pay particular attention to the types of short-term rentals most likely to reduce the availability and affordability of long-term housing.
The European Commission said any further restrictions on short-term rentals would need to be justified, apply only to areas with genuine problems, and not be applied retroactively.
Airbnb's response and the market reaction
Airbnb shares fell by about 3% during morning trading on September 10 following news of the proposal.
The company said the real problem is a shortage of housing overall. George Mavros, Airbnb's head of public policy for EU affairs, pushed back on the plan, saying regulation should instead focus on where a genuine shortage exists, in construction, renovation, and the use of housing that currently stands empty across Europe.
What happens next
The bill can only take effect once it is approved by EU member states and the European Parliament, a process expected to unfold in the coming months.
If adopted, the measure could eventually reduce the supply of short-term rentals available to tourists and, as a result, push prices higher.
Housing pressure across Europe
Popular tourist destinations such as Spain, Italy and Greece have faced a serious housing shortage in recent years. Local residents have blamed tourists for driving up costs, arguing that owners of apartments in desirable neighborhoods prefer to rent them out short-term to travelers at higher rates rather than offer them to local residents at lower long-term rents.
In response, some countries have already begun restricting popular short-term rental platforms. Spain declared 120,000 Airbnb listings illegal and ordered them removed, and local authorities later fined the company 64 million euros for various violations.
Airbnb has argued it is unfair to blame the company alone for overtourism, saying the housing shortage across Europe is a far broader problem.
