European Parliament Debates Housing Crisis and Short-Term Rental Regulations

The newly established HOUS Committee in the European Parliament convened for an exchange of views with Dan Jorgensen, the EU Commissioner for Energy and Housing. The discussion centered on the pressing challenges facing the housing sector, including soaring rental prices, the impact of short-term rentals, and the future of EU regulations in this area.

Housing Sector in Crisis

Commissioner Jorgensen highlighted the stark reality of Europe’s housing market, revealing that over the past 15 years, rents have surged by 25% while house prices have skyrocketed by 50%. He acknowledged the growing tension between short-term rental platforms and local housing markets, recognizing their importance to tourism while stressing the need to mitigate their adverse effects on local residents. With the EU’s new regulation on short-term rentals set to take effect next year, Jorgensen expressed optimism but also called for continued dialogue on potential additional measures. Looking ahead, he underscored the importance of outreach, engagement, and consultation to ensure the affordable housing strategy reflects the needs of all European regions, cities, rural areas, and outermost territories.

MEPs Raise Concerns and Call for Action

Nikolina Brnjac (EPP, Croatia) welcomed the upcoming short-term rental regulations but questioned whether the Commission was considering further action based on future data. Meanwhile, Gabriele Bischoff (S&D, Germany) voiced concerns over ongoing legal battles between cities and the Commission regarding local restrictions on short-term rentals. She criticized what she saw as a contradiction in the Commission’s stance, arguing that its approach seemed to favor large platforms like Airbnb over affordable housing initiatives. Bischoff demanded clarity on whether the EU would support cities in their efforts to regulate short-term rentals.

Jorgensen acknowledged the complexity of the issue, noting the significant differences in opinion across Member States. While some advocate for stricter regulations, others prefer a more market-driven approach. He emphasized the need for further data collection and admitted that, despite recent legislative efforts, additional action would likely be necessary to strike a balance between market freedom and housing affordability.

Calls for Stronger Regulations

Leila Chaibi (The Left, France) pushed for a concrete legislative initiative on short-term rentals, pointing to examples where municipal regulations had successfully increased housing availability and reduced rent prices. Jorgensen, who had recently met with European mayors facing similar challenges, agreed that their insights were invaluable. He suggested that even before the full implementation of existing legislation, further regulatory measures would likely be needed.

Alicia Homs Ginel (S&D, Spain) raised the issue of excessive tourism and its detrimental effects on housing accessibility. She inquired whether the Commission was considering regulatory frameworks to curb rent hikes fueled by short-term rentals. In response, Jorgensen acknowledged the role of taxation as a possible solution, noting that some Member States were already applying different tax policies to short-term rentals. He assured that the Commission would continue examining taxation as a potential tool while considering its impact within the single market framework.

A Step Forward, But More Work Ahead

The debate underscored the urgency of addressing Europe’s housing crisis and the need for a balanced approach to short-term rental regulations. While the upcoming EU regulation is a step in the right direction, the discussion made it clear that further action will be required to ensure fair and affordable housing for all European citizens.