EU Targets Airbnb Rentals in New Housing Affordability Plan

The European Union is set to introduce new regulations for short-term rentals, such as those offered by Airbnb, in an effort to address the housing affordability crisis across the bloc. The initiative, led by the EU’s first housing commissioner, Dan Jørgensen, aims to tackle issues like property speculation and tenant rights, as well as the social impacts of tourist rentals.

The European Union is preparing to unveil its first comprehensive plan to address the growing housing affordability crisis exacerbated by short-term rental platforms like Airbnb and Booking.com. This initiative is spearheaded by Dan Jørgensen, the EU’s inaugural housing commissioner, who emphasizes the urgency of the situation, describing it as a “social crisis.” The plan, originally slated for release in 2026, has been expedited to December due to pressing concerns.

Short-term Rentals and Their Impact

Short-term rentals have surged in popularity across European cities, leading to significant increases in rental prices and housing shortages. These platforms have been criticized for driving up costs, displacing residents from historic neighborhoods, and transforming residential areas into tourist hotspots. Jørgensen highlights the need for more robust European regulations to address these issues, acknowledging that current policies have fallen short.

Rising Housing Costs and Economic Pressures

A general rise in housing costs across the EU further compounds the housing crisis. From 2010 to 2023, house prices increased by 48%, while rents rose by 22%, outpacing inflation, which grew by 36% during the same period. Certain countries, such as Estonia, Lithuania, and Ireland, have experienced even steeper increases in rental costs. By 2023, nearly 9% of the EU population was spending 40% or more of their disposable income on housing, with Greece, Denmark, and Germany being particularly affected.

Potential Solutions and Policy Proposals

The EU’s affordable housing plan aims to address the “financialization” of housing, where properties are treated as commodities for speculation, often disregarding societal needs. While specific policy details remain undisclosed, the plan is expected to draw on various national strategies, such as mandating developers to include affordable housing in new projects. Additionally, the European Commission is exploring ways to strengthen tenant rights and adjust state-aid rules to facilitate government support for housing initiatives.

Political and Economic Considerations

The housing crisis has become a significant political issue, influencing voter behavior in recent elections where nationalist and far-right parties gained traction. Rising living costs were a primary concern for voters, as highlighted by a European Parliament survey. In response, European Commission President Ursula von der Leyen has called for a “radical overhaul” of housing policies and announced plans for an EU housing summit to prioritize the issue.

Challenges and Future Directions

Despite the urgency, the proposed measures face challenges, including balancing the diverse housing markets across the 27 EU member states. Some proposals, such as a €300 billion fund for housing grants and loans, have sparked debate and may prove contentious. Jørgensen has refrained from specifying spending targets but acknowledges the need for substantial public investment to attract private capital.

The EU’s approach to housing is transforming, drawing parallels to the collective response to the Covid-19 pandemic. As the bloc navigates this complex issue, the upcoming housing summit will serve as a platform for leaders to articulate their strategies and collaborate on solutions.

Discover more at The Guardian.