In response to a growing housing crisis across Europe, the European Commission is preparing to propose new rules that could help local governments restrict short-term rentals—like those offered by platforms such as Airbnb—in areas where housing is in short supply. A draft of the proposed legislation, which is expected to be unveiled soon, is part of a larger effort to address the housing challenges that have been a concern for the EU since 2025. The Commission aims to provide local authorities with clearer legal tools to manage housing shortages, especially in cities where rising demand for rental homes has outpaced supply. Short-term rental platforms have long faced criticism in many European cities, particularly in popular tourist destinations where local residents are finding it harder to secure affordable housing. Some local governments have attempted to limit the number of short-term rentals, but these efforts have often been challenged in court by the companies that operate such services. The proposed law seeks to address this legal uncertainty by giving cities and regions the authority to regulate short-term rentals more effectively in areas where the housing market is under pressure. According to the draft, local authorities would be allowed to reduce access to short-term rentals and even restrict the purchase of properties intended for this type of rental in areas defined as "under housing pressure." The criteria for identifying these areas include the gap between housing prices and residents’ incomes, among other factors. Importantly, the proposal does not target individuals who rent out their primary residence for short periods, such as for vacation stays, distinguishing them from those who rent out properties as a primary business. The European housing crisis has affected all 27 EU member states, with housing prices rising by 60% and rental prices increasing by nearly 30% over the past 15 years, according to the European statistical institute. While the lack of new housing construction is a major cause of the crisis, the rapid growth of short-term rental platforms has worsened the situation in some of the most popular tourist areas. However, these platforms have denied that their operations contribute significantly to the housing shortage. A spokesperson for Airbnb stated that the housing crisis requires long-term solutions focused on increasing the supply of homes, rather than restricting rental options.