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The European Commission prepares Affordable Housing Act to regulate short-term rentals across Europe

The European Commission is preparing a new Affordable Housing Act to provide local authorities with a legal framework to manage short-term rentals in areas experiencing housing stress. The administration announced that the legislation aims to provide a harmonized baseline to help cities limit or block tourist-furnished rentals in markets where housing has become unaffordable. This new regulation is expected to be discussed during a September 9 meeting. The draft legislation seeks to distinguish between private individuals who rent out their homes for a few weeks a year and the commercial exploitation of large apartment portfolios. It also aims to correct a competitive asymmetry where hotels must comply with safety and taxation standards that many short-term rentals currently ignore. While the housing crisis is fundamentally caused by a construction deficit, the administration announced that this law provides a tool for immediate action. The legislation will be activated based on documented evidence of market pressure, specifically the gap between property prices and resident household income. This framework is intended to provide legal certainty to municipalities, allowing them to offer more assertive regulatory power over property intended solely for rental operation.

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