[Edaily Kang Gyeong-rok Travel Reporter] In major European tourist cities, tourists and residents are finding themselves competing for “homes.” While the rapid growth of short-term rental accommodations, such as Airbnb, has increased the number of places for tourists to stay, homes intended for long-term residency by locals are being converted into tourist accommodations. In response, the European Union (EU) is moving to regulate short-term rentals to establish new standards that balance tourists’ accommodation choices with residents’ right to housing.
According to Reuters and the European Commission on the 7th, the Commission plans to release a draft of the “Affordable Housing Act”—which focuses on short-term rental regulations—on the 9th. The draft obtained by Reuters includes measures that would allow local governments to limit the supply of rental units based on the impact of short-term rentals, including Airbnb, on the housing market.

The key is to take a closer look at housing conditions in areas popular with tourists. By comprehensively analyzing factors such as income levels relative to housing prices, population growth, and housing supply and demand, the Commission aims to identify so-called “housing stress areas.” Measures are being considered that would allow local governments in these areas to set caps on the volume of short-term rentals or apply different standards to existing and new operators.
This does not mean a blanket ban on Airbnb operations. The European Commission also recognizes that short-term rentals expand accommodation options for tourists and generate income for landlords and the local economy. Instead, the goal is to establish common standards that allow local governments to apply proportionate regulations in areas with severe housing shortages, in the public interest of ensuring housing stability for residents.
The rapid growth of the short-term rental market is driving the EU’s regulatory efforts. According to Eurostat, short-term rental stays within the EU booked through online platforms such as Airbnb, Booking.com, and Expedia totaled 951.6 million nights last year. This represents an 11.4% increase from the previous year and a 32.4% increase compared to 2023. Compared to the 512 million overnight stays recorded in 2019—before the COVID-19 pandemic—this represents an increase of about 86% over the course of six years.
The upward trend has continued into this year. In the first quarter, short-term rental stays booked through online platforms totaled 144.3 million overnight stays, a 9.7% increase from the same period last year. The market has grown to the point where, on average, several million people per day are staying in apartments and houses rather than hotels.
In particular, reliance on short-term rentals was high in countries and cities with high concentrations of tourists. Last year, France recorded the highest number of short-term rental stays through platforms at 213 million, followed by Spain with 189 million and Italy with 139 million. These three countries accounted for 56.8% of the EU total. By city, Paris had the highest number at 26.3 million.
The problem is that as the tourism accommodation market grows more rapidly, the line between it and the residential housing market becomes increasingly blurred. When landlords shift apartments and houses that could be offered for long-term rent to short-term rentals targeting tourists—which are more profitable—the housing supply available to residents decreases. This is why short-term rental regulations have emerged as one of the measures to combat overtourism in cities with high tourist concentrations, such as Paris, Barcelona, and Venice.
The EU has already taken the first step toward managing the short-term rental market. Since last May, when the Short-Term Rental Transparency Regulation took effect, member states operating a registration system must assign hosts a unique registration number, and platforms are required to display and verify this information. A system has also been established for platforms to regularly share data—such as the number of nights stayed—with the government. Authorities can require platforms to remove listings for illegal accommodations.
The significance of this regulatory package lies in the shift from the data collection phase to the actual management of supply. The European Commission estimates that short-term rentals currently account for about a quarter of Europe’s tourism accommodation supply. While it is difficult to ban them entirely—given that they have become a major part of the tourism industry’s accommodation infrastructure—the Commission believes that separate management is necessary in areas facing severe housing shortages.
From an industry perspective, there are two sides to the issue. Tighter regulations could lead to a reduction in supply for platforms like Airbnb and their hosts. In tourist cities where hotels are scarce or accommodation costs are high, travelers’ options may narrow, potentially driving up prices. Conversely, for the hotel industry, this could level the playing field between short-term rentals and existing accommodation facilities, which are subject to various regulations regarding fire safety, hygiene, and security.
Backlash against the regulations is also expected. The short-term rental platform industry argues that excessive restrictions will not only reduce landlords’ income but could also impact local economies heavily dependent on the tourism industry. According to Reuters, the industry is voicing concerns that if regulations are expanded too broadly, the damage could spread to tourists and local small business owners.
These discussions hold significant implications for South Korea, where tourist numbers are on the rise. Professor Shim Chang-seop of the Department of Tourism Management at Gachon University noted, “To attract more international visitors to Korea, we need a diverse range of lodging options, not just hotels,” but added, “At the same time, an increase in residential-based lodging facilities could lead to issues such as illegal accommodations, safety management concerns, complaints from residents, and questions of regulatory fairness with existing lodging businesses.” He further emphasized, “The issue is not whether to allow or ban shared lodging, but to what extent it should be permitted and how it should be managed,” adding, “As the number of tourists increases, more lodging facilities are needed; however, if that supply comes at the expense of residents’ housing, there will inevitably be a conflict between the growth of the tourism industry and the interests of the local community.”
Meanwhile, the draft reportedly set to be released by the European Commission on the 9th marks the first step toward establishing Europe-wide standards to address this conflict. However, the release of the draft does not necessarily mean the regulations will be implemented immediately. Following the Commission’s proposal, legislative procedures—including discussions with member states and the European Parliament—remain. The specific level of regulation and the implementation timeline may also change during future consultations.