Regulating Short-Term Rentals to Protect Local Residents

What is the problem?

The rapid expansion of short-term rentals through digital platforms has reduced the availability of long-term housing in popular tourist areas. This drives up rents, displaces local residents, and threatens the social fabric of neighbourhoods.

What should be done?

Governments and municipalities should introduce regulatory frameworks that limit or tax short-term rentals to ensure they are not more profitable than long-term leases. Measures may include capping the number of days a property can be rented, mandatory registration, or differential taxation favouring permanent housing.

Who should act?

Primarily local governments, supported by national legislation and coordinated with EU guidance on sustainable housing and tourism policies.

What impact will it have?

Such regulation will stabilise housing markets, preserve community diversity, and promote balanced urban development. It will also encourage fair competition and align tourism growth with residents’ right to affordable housing.