The European Union is drafting the Affordable Housing Act to allow local authorities to restrict short-term rentals like Airbnb. This legislation empowers cities to impose limits in areas officially designated as being under housing stress.
Cities must demonstrate that holiday lets are worsening local housing availability and affordability to justify restrictions. The proposal provides legal clarity for cities like Paris and Barcelona that have already attempted to regulate the market.
Authorities will use indicators such as the local property price-to-income ratio to validate these interventions. The rules build on May 2026 regulations requiring platforms to share activity data with local governments.