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The European Commission plans to introduce new housing rules to regulate short-term rentals and improve affordability across the EU.

The European Commission is drafting an Affordable Housing Act to provide national and local authorities with clearer rules for restricting short-term holiday rentals and the purchase of land or homes not used as primary residences. The administration announced that these measures will be allowed only in areas with clear evidence of serious housing pressure, aiming to balance the economic benefits of tourism with the need for affordable housing. While short-term rentals represent only 1.2% of the EU's total housing stock, they can account for up to 20% in popular tourism hotspots. The administration announced that the new legislation will empower cities to target professional multi-property operators while protecting the ability of individuals to rent out their main residences. This move follows a decade of skyrocketing housing prices, where rents have risen 21.8% and prices have increased 64.9% between 2015 and 2025. The Commission acknowledges that these restrictions alone cannot solve the structural housing shortage caused by high construction costs and lengthy permitting processes. To address this, the administration announced a "Housing Simplification Package" due in 2027 to cut administrative barriers. The Commission is set to present the housing plan on 9 September.

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