Housing Affordability Drives New Limits on Short-Term Rentals Across European Cities

"Across Europe's major tourist cities, housing affordability has increasingly emerged as one of the most pressing urban challenges, prompting governments to reassess the role of short-term rentals within residential neighborhoods. In Barcelona, Mayor Jaume Collboni recently announced plans to phase out tourist short-term rentals entirely by 2028, framing the decision as part of a broader effort to protect residents' right to remain in the city."

"The announcement coincides with a €64 million fine imposed by the Spanish government on Airbnb for advertising unlicensed properties, placing Spain at the center of an intensifying debate over how tourism-driven accommodation models intersect with housing access, inequality, and urban stability. Speaking at the municipal level, Barcelona mayor Jaume Collboni has framed housing as one of the main sources of social inequality across European cities, arguing that market activity linked to tourism must not undermine residents' ability to remain in their neighborhoods."

"Alongside the proposed elimination of tourist short-term rentals by 2028, the city has implemented rent caps on long-term leases, reporting a decrease in rental prices since their introduction. City officials have characterized these measures as "an extraordinary response to an extraordinary situation," arguing that conventional market mechanisms alone have proven insufficient to address housing pressure fueled by tourism demand."

Across Europe's major tourist cities, housing affordability has worsened, prompting reassessment of short-term rentals' role in residential neighborhoods. Barcelona plans to phase out tourist short-term rentals entirely by 2028 and has implemented rent caps on long-term leases, with officials reporting rental price decreases since their introduction. Spain imposed a €64 million fine on Airbnb for advertising unlicensed properties. Barcelona's mayor frames housing as a central source of social inequality and calls for coordinated EU action. City officials describe restrictions as an extraordinary response to an extraordinary situation, contending market mechanisms alone cannot address tourism-fueled housing pressure. The approach reframes housing as a social right.

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