EU Commission Proposes Sweeping Measures to Limit Airbnb and Second-Home Purchases to Tackle Housing Crisis

The European Commission is set to introduce new housing regulations that would provide national and local authorities with clearer guidelines for limiting short-term holiday rentals and the acquisition of homes or land that are not used as a primary residence, according to a document obtained by Euronews.

The prospect of stricter measures comes as housing prices have surged beyond local income growth in most European capitals, increasing by 64.9% between 2015 and 2025, while rents have risen by 21.8%, according to EU data.

Even those unable to purchase a home are confronting escalating rents, which now account for 40% of household income. Middle-class families are increasingly finding themselves in a situation where they cannot afford to buy or rent, yet are also ineligible for social housing.

Residents in cities such as Lisbon, Barcelona, and Prague have voiced concerns that short-term rental platforms like Airbnb have taken homes off the market and driven up prices, often forcing them to relocate. According to 2024 EU data, nearly 10% of people living in EU cities spend more than 40% of their disposable income on housing.

Short-term rentals account for only 1.2% of the EU’s total housing stock, but they can represent up to 20% in certain tourism hotspots. With insufficient new homes being constructed where demand is highest, Brussels estimates that over 2 million new homes are needed annually to address the issue.

However, the Commission’s proposed restrictions would be permitted only in areas with clear evidence of severe housing pressure.

For Airbnb-style rentals, the EU is particularly concerned about commercial operators managing multiple properties as holiday lets, as opposed to individuals occasionally renting out their own home. Under the proposal, cities would be able to target professional multi-property operators, while protecting a person’s ability to rent out their primary residence.

The document states that to limit the negative impact on the internal market, any measures restricting access to or the provision of short-term accommodation rental services, or restricting the acquisition and use of land and residential property, should be confined to areas where acute pressure on the availability and affordability of residential property justifies action to safeguard affordability and availability.

However, the Commission acknowledges that restrictions on short-term rentals and limits on second homes cannot resolve Europe’s structural housing shortage. Other challenges include high construction costs, expensive land, planning restrictions, and lengthy permitting processes.

According to Housing Europe, the Brussels-based European Federation of Public, Cooperative, and Social Housing, housing needs far exceed supply. The latest data show that France requires 518,000 homes annually (including 198,000 social homes), Germany needs 400,000 (including 140,000 social), the Netherlands requires nearly 1 million by 2031, and Sweden needs over 500,000 by 2033 – yet new construction consistently falls short of demand, often by as much as 50%.

The Commission is developing a ‘Housing Simplification Package’ aimed at reducing administrative barriers that slow construction, expected to be completed in 2027.

Housing has also become an investment asset, making it increasingly difficult for younger people and middle-income households to purchase property.

EU lawmaker Leïla Chaibi (The Left/France) told Housing Commissioner Dan Jørgensen on September 2 that financialization and the widespread use of housing as an asset are among the main drivers of the lack of affordable housing in EU cities.

‘It is time for the EU to act, and we know short-term rentals have an impact on the housing crisis, in our city centres, in our neighbourhoods, as well as in the countryside everywhere in Europe now,’ Chaibi said.

The Commission is also considering encouraging national governments to intervene when an area has house prices at least eight times higher than incomes, prices have risen over the previous decade, and the situation is not expected to improve within the next three years.

Housing is a national and local responsibility, leaving the Commission powerless to compel member states or cities to build more. Instead, Brussels is attempting to use EU funding, state-aid rules, investment, and legislation to influence the market.

Commenting on a 2025 S&D study on short-term rentals, EU lawmaker Gaby Bischoff (S&D/Germany), vice-president for Sustainable Economy and Social Europe, warned that too many Europeans are facing evictions or are even at risk of homelessness. She attributed the crisis to growing socio-economic inequality and unsustainable housing systems that ‘prioritise profit over people’.

According to the European Federation of National Associations on Homelessness (Feantsa), an estimated 1.2 to 1.3 million people experience homelessness across the EU on any given night, a figure heavily driven by the deepening housing crisis and rising living costs.

The Commission is set to present its housing plan on September 9.

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