EU Affordable Housing Act: What It Could Mean for Short-Term Rentals

On 9 September 2026, the European Commission proposed the Affordable Housing Act, a draft EU Regulation (COM(2026) 599) that gives cities and regions a common framework for restricting short-term rentals in “areas under housing stress”. It is a proposal, not a law: the European Parliament and the Council must still agree on it, and even then it would not ban or cap anything by itself, because any restriction stays a local decision that must be backed by evidence and cannot target a host’s primary residence. What already applies is the EU short-term rental data regulation, in force since 20 May 2026: registration numbers on listings and data sharing by platforms wherever a registration scheme exists.

This article explains a legislative proposal and the EU rules in force for hosts. It is not legal advice. Status checked on 8 October 2026.

What exactly did the Commission propose on 9 September 2026?

The text is a proposal for a Regulation “establishing a framework for measures in Member States to safeguard housing affordability and availability”, known as the Affordable Housing Act (procedure 2026/0268 (COD)). It comes with a Commission Recommendation on increasing housing supply in the same areas, and both belong to the European Affordable Housing Plan the Commission presented on 16 December 2025.

The Commission’s reasoning, set out in its questions and answers on the Act: short-term rental activity on the four major platforms grew by 93% between 2018 and 2024, and it is concentrated in the areas under the highest housing pressure. Authorities that have tried to limit it have faced legal challenges over compatibility with EU law, and national and local authorities asked Brussels for more legal certainty.

The Act answers that request in two ways. It sets a common test that an authority must pass before restricting short-term rentals on housing grounds, and in exchange it gives that authority legal certainty that a measure passing the test is compatible with EU law. The Commission stresses that the Act “neither requires, prescribes nor recommends restrictions” and creates no EU-level restriction: authorities keep using the tools their national law already gives them, such as restrictions on non-primary use or authorisation for a change of use.

What could cities do to short-term rentals under the Affordable Housing Act?

A city, region or national authority that wants to restrict short-term rentals to protect housing would have to go through these steps, set out in Articles 5 to 13 of the proposed Regulation:

1. Show that the area is under housing stress. The price-to-income ratio (the price of an average dwelling divided by disposable income per person) must be at least 8 and rising over the last 10 years, or at least 10. The authority must also show that the stress is unlikely to ease within three years, looking at population, supply and demand. The area must be clearly delimited: a district, a municipality, a metropolitan area or part of one.
2. Prove the harm. Short-term rentals must have had a significant adverse effect on housing availability or affordability in that area for at least three years, using the platform data from the EU data regulation where available.
3. Prove that nothing lighter would work. The measure must be necessary, proportionate, non-discriminatory and limited to the stressed area, and the authority must show that a less restrictive measure would not be equally effective.
4. Target the right activity. Measures must be calibrated to rentals that, by their scale, frequency or commercial character, are more likely to take homes off the long-term market. The recitals name the number of dwellings a single host offers and how often they are rented as criteria.
5. Enforce registration first. The authority must apply and enforce the EU short-term rental data regulation in the area, including orders to remove listings with no registration number or an invalid one.
6. Limit and publish. A measure lasts five years at most and can be renewed only after a review. It must be published, with its assessment, exact area and duration, before it applies, and people affected can challenge it in court.

The proposal also takes these short-term rental measures out of the Services Directive, including its notification procedure, and replaces it with this housing-specific test.

Are hosts who rent out their primary residence exempt?

Yes, and it is the clearest protection for individual hosts. Article 5 limits restrictions adopted on housing grounds to accommodation that is not the host’s primary residence, and recital 27 calls this a minimum safeguard: authorities may exempt more categories, never fewer. A primary residence is the home where you habitually live and where the centre of your interests lies, as further defined by national law.

Two caveats. First, the exemption covers restrictions adopted under this Act on housing grounds. Rules adopted for other reasons, such as public security, consumer protection, the environment or cultural heritage, stay outside the Act and follow existing law. Second, it does not remove your registration duties. When you register a unit under the data regulation, you already declare whether it is your primary residence, a secondary residence or used for other purposes, and that declaration is likely to be what authorities rely on to tell the two apart. Make it accurately.

Is the Affordable Housing Act law yet? What happens next?

No. It is a Commission proposal that now goes through the ordinary legislative procedure: the European Parliament and the Council (the governments of the Member States) each set their position, negotiate, and must adopt the same text. Either can amend anything, including the thresholds and the primary-residence exemption, and no adoption date has been announced.

If it is adopted, it will be a Regulation, so it would apply directly in every Member State without national transposition, entering into force 20 days after publication in the Official Journal. Even then, nothing changes on its own for hosts. A restriction only follows if a local or national authority decides to act, carries out the assessment and publishes a measure. Measures adopted before the Act enters into force are not covered at all: existing rules, such as the night caps that already apply to primary residences in France, stay under the law that governs them today.

Which EU short-term rental rules already apply?

The rule that is live today is Regulation (EU) 2024/1028 on data collection and sharing for short-term accommodation rental services, which has applied since 20 May 2026. It does not restrict renting. It harmonises transparency wherever a Member State chooses to run a registration scheme:

• A registration number per unit. Where a registration procedure exists, you declare the unit (address, type, primary or secondary residence, capacity, any authorisation it needs) and receive a number.
• The number on every listing. Platforms must make sure you have provided the number and that it is displayed clearly before the listing goes live, and must run regular random checks on whether numbers are valid.
• Data shared every month. In areas where authorities require it, platforms send them, per unit, the number of nights rented and the number of guests per night, with the registration number, the address and the listing URL. Small platforms report every quarter.
• Listings can be removed. Authorities can order platforms to take down listings with no number, an invalid or suspended number, or a misused one.

The two texts fit together. The data regulation gives authorities reliable figures on where and how much short-term renting happens; the proposed Act tells them how to use those figures before restricting anything, and makes enforcing registration a precondition.

What should hosts do now?

1. Register wherever a scheme exists. France, Italy and Spain each run their own system and number format; our guide on how to register your vacation rental in France, Italy, Spain and the UK covers the steps country by country.
2. Show the number on every channel. Airbnb, Booking.com, Vrbo, Expedia and, as good practice, your own booking site. A listing without a valid number is the first thing an authority can have taken down.
3. Declare your status accurately. If the property is your primary residence, say so and keep proof, such as your tax address and utility bills. If it is not, assume any future restriction in your city could concern you.
4. Keep your own record of nights and guests. Platforms now report them; your figures should match theirs, especially where a night cap applies.
5. Stay compliant locally. Authorisations, change-of-use rules, night caps and tourist tax do not wait for Brussels. In France, the anti-Airbnb law already gives communes strong tools, and if you collect tourist tax yourself, see how to collect and automate tourist tax.
6. Watch your city. Under the proposal, a housing-stress assessment and any measure must be published before they apply. If you run several units that are not your home in a tight market, prepare a plan B now, for example a switch from short-term to mid-term rentals.

Where Nowistay fits

Nowistay won’t decide whether your city restricts rentals, but it keeps the day-to-day side tidy. Calendar, rates and bookings stay in sync in real time across Airbnb, Booking.com, Vrbo and Expedia, so when you need to close dates to respect a night cap or a seasonal rule, you close them once in the calendar and every connected platform follows, while the AI co-host keeps answering guests on Airbnb, Booking.com, Expedia, WhatsApp and email.

Frequently asked questions

What is the EU Affordable Housing Act?

It is a proposal for an EU Regulation presented by the European Commission on 9 September 2026 (COM(2026) 599). It sets a common method to identify areas under housing stress and the conditions an authority must meet before restricting short-term rentals or other non-primary uses of housing in those areas. It is part of the European Affordable Housing Plan of December 2025.

Will the EU Affordable Housing Act ban Airbnb?

No. The Commission says the Act neither requires, prescribes nor recommends restrictions and introduces no EU-level ban. It sets the test a city must pass if it chooses to restrict short-term rentals: proven housing stress, at least three years of significant harm, no less restrictive alternative, and a measure limited to five years.

Are primary residences exempt from the Affordable Housing Act?

Yes. Under the proposal, restrictions adopted on housing grounds can only apply to accommodation that is not the host's primary residence, and authorities may exempt more categories. Rules adopted for other reasons, such as public security or cultural heritage, and registration duties still apply.

When will the Affordable Housing Act apply?

No date is set. The proposal must go through the ordinary legislative procedure, and the European Parliament and the Council can amend it. If adopted, the Regulation would enter into force 20 days after publication in the Official Journal and apply directly, but it would not change anything for hosts until an authority adopts a measure under it.

What EU short-term rental rules apply today?

Regulation (EU) 2024/1028 has applied since 20 May 2026. Where a Member State runs a registration scheme, hosts need a registration number per unit, platforms must make sure it is displayed on listings and check it, platforms share nights and guest numbers with authorities, and listings without a valid number can be removed.

What happens to existing city rules on short-term rentals?

Measures adopted before the Affordable Housing Act enters into force are not covered by it and stay governed by the rules that apply to them today. Authorities may choose to review an existing measure under the new framework.