Public Consultation – European Affordable Housing Plan

20 October 2025: HOTREC submits the final response to the public consultation on the European Affordable Housing Plan.

The unregulated growth of short-term rentals (STRs) across European cities has triggered profound transformations in urban housing markets, community dynamics, and public infrastructure. Originally positioned as a flexible and innovative component of the tourism economy, STRs have increasingly come under scrutiny for their unintended consequences, particularly their role in reducing the availability of long-term housing, inflating property and rental prices, and straining historic city centers.

STRs are now the fastest-growing segment of the accommodation sector, with overnight stays increasing by 67% between 2019 and 2024, compared to just 2.3% growth in the hotel sector over the same period. This surge underscores STRs’ central role in the overtourism debate and highlights the urgency of developing policy responses that can keep pace with the sector’s unregulated expansion.

This position paper, developed by HOTREC, outlines the multifaceted impacts of STR proliferation and presents evidence-based policy recommendations to guide future regulation. Drawing on data from Eurostat, Inside Airbnb, and city-level case studies, the paper highlights how STR unregulated saturation has contributed to gentrification, resident displacement, infrastructure strain, and mounting social tensions. It also examines the challenges faced by public authorities in enforcing zoning restrictions and ensuring fair competition between STR platforms and traditional accommodation providers.

A key driver of STR proliferation is the light-touch regulatory framework under which STRs currently operate, particularly when compared to the strict and long-standing obligations imposed on hotels on issues such as labour, taxation, environmental, intellectual property, safety, health, security, food, etc. This imbalance has enabled STRs to expand rapidly, often without adequate oversight or accountability. In light of these findings, HOTREC calls for:

• coherent and enforceable policies adjustable to the needs of national, regional, and local realities while promoting consistency across Member States.
• Enhanced data transparency to monitor STR activity and enforce zoning and licensing rules.
• Baseline obligations for STR platforms on taxation, safety, hygiene, and insurance, comparable with hotel standards.
• Implementation of the ViDA rules to ensure fiscal fairness and close tax loopholes.
• Minimum EU standards for STR operations to protect guests and communities.