In 2026, European officials set out to tackle one of the most pressing issues of recent years—the rapid growth of short-term rentals and their impact on housing affordability. Housing Commissioner Dan Jorgensen presented a fresh perspective on how to bring order to the chaos that tourist apartments are causing in city life. The focus is not on outright bans, but on creating flexible tools for local authorities so they can independently decide where and how to limit short-term rentals.
Instead of one-size-fits-all solutions that often spark discontent and fail in practice, the European Commission is proposing to define so-called ‘stress zones’—neighborhoods where rentals have become inaccessible for locals due to a surge of tourists and speculators. It is in these areas that cities will be granted the right to introduce their own regulations without fear of legal pitfalls or bureaucratic delays.
Tools for local governments
Jorgensen emphasized that this is not about top-down directives—each country, and even individual cities, will themselves decide what measures to implement. Possible tools include caps on the number of days a property can be rented out to tourists, seasonal bans, or even distinguishing between professional and private landlords. According to the commissioner, this approach will help prevent the mass displacement of local residents and maintain a balance between business interests and the needs of society.
A particular focus is placed on the professionalization of the market. In some cities, investors are buying entire buildings and turning them into hotels under the guise of tourist apartments. This not only undermines the long-term rental market but also transforms entire neighborhoods. The new regulations aim to distinguish between those who occasionally rent out their homes and those who have turned it into a large-scale business.
Speculation and vacant apartments
Another issue receiving attention is real estate speculation. As long as it remains profitable to keep apartments empty in anticipation of rising prices, investors are in no hurry to rent them out. Jørgensen admits that, while there are no transparent figures on the scale of this phenomenon, its impact on the market is obvious. One proposal being discussed is tougher tax policies for owners of vacant properties, although decisions in this area remain up to national governments.
According to the European Commission, about 20% of the EU’s housing stock is not used as intended. At a time when millions of Europeans are struggling to find affordable housing, these figures are a challenge to the entire system. However, as the commissioner notes, imposing uniform standards across all countries leads nowhere. The conditions and problems are simply too different.
Data and transparency
One of the main challenges is the lack of reliable information about the real situation. Without transparent data, it is impossible to assess how acute the problem of speculation is or understand the true impact of short-term rentals on cities. Jorgensen insists that before introducing new restrictions, it is crucial to gather facts and build an objective picture. Only then can we expect effective solutions instead of yet another bureaucratic reform for appearances’ sake.
However, even the most sophisticated tools are useless if local authorities are unwilling to use them. The European Commission only provides frameworks and recommendations, while how they are implemented is up to each individual country and city. This approach could become a lifeline for some, and a headache for others.
Flexibility instead of bans
Instead of strict limitations and outright bans, Europe is betting on flexibility. This not only reflects the diversity of national markets but also allows the interests of all sides to be taken into account. Tourism won’t disappear, but local residents also won’t be left without a roof over their heads. The question is who will take advantage of the new opportunities, and who will be left behind.
While some cities prepare for change, others prefer to wait and see. But one thing is clear: the era of unchecked growth for short-term rentals is coming to an end. It is being replaced by a period of conscious decisions and a balance of interests. Who will win this battle remains to be seen in the near future.
In case you didn’t know, Dan Jørgensen is a Danish politician who has served as the European Commissioner for Housing since 2024. He is known for his proactive stance on sustainable development and social justice in the housing sector. Jørgensen has repeatedly emphasized the importance of finding a balance between economic interests and citizens’ rights to affordable housing. His initiatives often spark lively debates among experts and business representatives.
