Overview of the In‑Depth Analysis
The European Parliament’s Policy Department for Transport, Employment and Social Affairs (CASP) commissioned this comprehensive study, authored by Professor Claire Colomb, a Land Economy expert at the University of Cambridge, together with policy analysts and researchers from the EP. The analysis was requested by the Special Committee on the Housing Crisis (HOUS) to assess how short‑term rentals (STRs) affect affordable housing across EU member states and to evaluate the regulatory landscape.
Policy Context and Legislative Framework
The report examines two principal EU legal strands influencing STR regulation: the 2000 E‑Commerce Directive, updated by the 2022 Digital Services Act, governing digital platforms, and the 2006 Services Directive, which frames market‑access rules for STR operators. It also details the newly adopted Regulation (EU) 2024/1028 on data collection and sharing, set to improve data availability for enforcement from May 2026 onward.
Scale of the Short‑Term Rental Market
In 2024, Eurostat recorded 854 million guest‑nights booked through the four largest platforms in the EU, up from 719 million in 2023. By mid‑2025, Airbnb listed over 8 million active units in more than 150 000 cities worldwide, with Europe hosting just over 4 million listings and a peak demand of 48.5 million guest‑nights in June 2025. The most active markets remain France, Spain and Italy, while Eastern and Northern Europe showed the strongest growth rates.
Economic Impact on Housing Supply
Empirical evidence across cities shows STR growth can reduce long‑term rental stock. In Berlin, a 1‑unit increase in nearby commercial Airbnb listings lowered long‑term supply by 0.2–0.4 units and lifted average rents by 1.3–2.4 %. In Barcelona, neighborhoods with high STR density experienced rent hikes of up to 7 % and price increases of 19 % (2012‑2016). Similar price pressures are documented in Paris, Milan, Lisbon and Athens, where STR concentration correlates with 3–4 % higher property values per 1 % rise in STR share.
Variety of Regulatory Instruments
The analysis identifies twelve common tools used by local, regional and national authorities, ranging from market‑access measures (authorisation licences, time caps, quantitative and spatial restrictions, primary‑residence obligations) to market‑operation rules (registration, guest reporting, safety standards, tourist taxes). Implementation differs widely: Barcelona enforces a “containment area” quota, Amsterdam caps rentals at 30 days per year, while Berlin’s 2016‑2018 ban on whole‑unit STRs temporarily removed 8 105 units from the market.
Enforcement Challenges
Four major obstacles limit regulatory effectiveness: (1) lack of precise STR data, (2) insufficient human and technical resources for monitoring, (3) limited cooperation from platforms despite EU obligations, and (4) frequent litigation that delays or overturns local measures. The new 2024/1028 regulation aims to address data gaps by requiring member states to create national registration schemes and a Single Digital Entry Point for platform‑to‑authority data exchange, but uncertainties remain around self‑declaration verification and random‑check procedures.
Cross‑Border Implications and EU Coordination
Because platforms operate across borders, the “country of origin” principle can hinder enforcement in jurisdictions where platforms are not established. The report recommends stronger EU‑level coordination, possibly through the European Commission’s pilot dialogues, to ensure consistent application of the Services Directive and to support member states in proportionate, evidence‑based regulation.
Key Findings for Sustainable Housing Policy
- STRs contribute to housing unaffordability primarily in dense, tourist‑heavy urban cores.
- Professionalisation of the market (multi‑listing operators) amplifies supply pressures.
- Light or intermediary regulatory approaches can balance tourism benefits with housing protection, but strict caps or bans are needed where STR density exceeds local “housing stress” thresholds.
- Reliable, granular data—facilitated by Regulation 2024/1028—are essential for proportionate measures and for monitoring long‑term impacts on rent levels and displacement.
Recommendations for Policymakers
- Strengthen enforcement capacity and allocate resources for data‑driven monitoring.
- Ensure that national registration schemes align with the EU regulation and include verification mechanisms to reduce false self‑declarations.
- Promote cross‑border cooperation with platforms, possibly revisiting the “country of origin” rule to enable timely takedown orders.
- Encourage local authorities to adopt a mix of market‑access and market‑operation tools tailored to specific housing‑stress zones, while preserving tourism’s economic contributions. By integrating these evidence‑based measures, EU policymakers can mitigate the adverse housing effects of short‑term rentals while supporting sustainable, inclusive urban development across the continent.