Short-term rentals have become “a huge problem” for European cities, warns Denmark’s Dan Jørgensen — the EU’s first-ever housing commissioner — as he prepares to unveil new bloc-wide rules targeting the runaway growth of platforms like Airbnb and Booking.com.

Jørgensen told The Guardian that Europe’s housing crisis has entered a “social emergency,” with local residents across the continent being priced out of their own neighbourhoods. “If we don’t, as policymakers, take this problem seriously and acknowledge that this is a social problem and needs action,” he said, “then the anti-EU populists will win.”

The EU’s First Housing Plan Moves Forward

Jørgensen has been tasked with developing the EU’s first affordable housing plan, which is now expected to be released in December 2025 — a year earlier than originally planned. The urgency, he said, reflects growing frustration among citizens and city governments alike.

“The upcoming housing plan will cover areas where it is indeed very clear that housing is a European competence and where we have failed to deliver so far,” he noted. One of those areas, he confirmed, is short-term rentals — where EU-wide coordination has lagged behind national and municipal efforts.

A Pan-European Problem: From Lisbon to Amsterdam

Across Europe, cities have been tightening rules on short-term lets for years. Amsterdam limits Airbnb-style rentals to 30 nights per year. Lisbon has frozen new short-term rental licenses in several districts. Barcelona, under pressure from housing activists, has ordered platforms to remove thousands of unlicensed listings.

Despite these efforts, short-term rentals continue to surge. According to InsideAirbnb data, listings have risen by more than 20% in several European capitals since 2023 — even as long-term rents have hit record highs. In Paris, for instance, rents jumped 9% in a single year.

Jørgensen said the Commission is studying how different countries are tackling the issue, pointing to Spain’s proposal for a 100% tax on property purchases by non-EU residents as one example of aggressive intervention. Other nations are demanding that developers allocate a fixed portion of new builds to affordable housing.

The Financialisation of Shelter

Beyond short-term rentals, Jørgensen plans to tackle what he calls the “financialisation” of housing — a trend where homes are treated as investment assets rather than places to live. “When housing becomes a commodity, something that is used for speculation with no need to take into consideration the rest of the society, then of course that potentially causes problems,” he said.

Analysts have long warned of this shift. Eurostat data shows that institutional investors now own an estimated 40% of newly built rental housing in some EU markets. Meanwhile, average housing costs across the bloc have risen 45% in the past decade — outpacing wages in all but two member states.

Jørgensen’s team is also exploring new tenant protection frameworks, especially for cross-border workers and students, who often fall through legal cracks between national housing laws.

Why This Matters Now

Europe’s housing crisis is no longer confined to major capitals. Medium-sized cities — from Krakow to Porto — are now seeing tourism-driven gentrification, rising evictions, and declining community cohesion. This, Jørgensen argues, risks fuelling broader political disillusionment.

“If we fail to deliver,” he warned, “we hand ammunition to those who claim the EU cannot protect its citizens.”

That message resonates far beyond Brussels. Housing affordability consistently ranks among the top three voter concerns across EU states, according to Eurobarometer.

Conclusion: The Airbnb Reckoning Has Arrived

Europe is finally confronting what local authorities have battled for years — the unintended fallout of the short-term rental boom. Platforms like Airbnb and Booking.com revolutionized travel and boosted tourism revenue, but they also helped turn city centres into speculative playgrounds.

The coming EU housing plan could mark a turning point: a move from fragmented, city-by-city rules toward a coordinated European framework balancing tourism, technology, and the right to housing.

Yet the challenge is complex. Travel platforms are lobbying hard against restrictions, arguing they democratize travel and provide vital income for hosts. Meanwhile, cities want to preserve livability and prevent the hollowing out of urban life.

In many ways, this debate mirrors the broader digital regulation trend — much like the EU’s clampdowns on Big Tech, digital markets, and data privacy. As with those industries, the bloc seems ready to assert control where innovation has outpaced social safeguards.

The question is not whether the EU will act — but whether it can move fast enough to make housing affordable again, without crushing the very digital platforms that have redefined modern travel.