EU housing proposal could strengthen Florence's case for limits on short-term rentals

The European Union’s Affordable Housing Act, introduced in September 2026, aims to address chronic housing shortages across member states by setting stricter affordability thresholds. The proposal targets regions where housing costs exceed a defined “housing‑stress” level, prompting local authorities to implement measures that increase the supply of affordable dwellings and limit speculative short‑term rentals.

According to the article, the draft legislation would classify 28 of Florence’s 33 housing‑market zones as being above the housing‑stress threshold. This designation obliges the city to adopt tighter controls on short‑term rentals, which are currently contributing to a scarcity of long‑term homes for residents. The proposal therefore strengthens Florence’s existing case for imposing limits on platforms such as Airbnb.

• Total housing‑market zones in Florence: 33
• Zones exceeding stress threshold under the EU proposal: 28 (≈ 85 %)
• Current short‑term rental share of total accommodation: not specified, but identified as a significant factor in the housing shortage.
• The EU Act sets a quantitative benchmark for “affordable housing” based on median household income, though the exact percentage is not detailed in the article.

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The proposal encourages municipalities to:

1. Restrict the conversion of long‑term housing into short‑term tourist rentals.
2. Promote the construction of new affordable units through incentives for developers.
3. Strengthen rent‑control mechanisms in zones identified as high‑stress. These measures are intended to rebalance supply and demand, ensuring that residents have access to stable, reasonably priced housing.

For a pan‑European audience focused on sustainability, the EU Affordable Housing Act aligns with broader climate‑friendly urban planning goals. By curbing short‑term rentals that often lead to under‑utilised properties, cities can reduce wasted resources and promote higher occupancy rates in existing housing stock. Additionally, the emphasis on new affordable construction is expected to incorporate energy‑efficient standards, contributing to the EU’s overall carbon‑reduction targets.

If adopted, the legislation would compel Florence to implement stricter short‑term rental regulations, potentially reducing the number of tourist‑focused units and freeing up housing for locals. The broader EU framework serves as a model for other cities facing similar pressures, offering a coordinated approach to sustainable, affordable housing across the continent.