Fair short-term rental rules protect the right to live, host and travel affordably in Europe

A new study by Oxford Economics commissioned by Airbnb highlights the positive impact of short term rentals on countries across the EU. Travelers staying in short-term rentals generated €149 billion in economic benefits, supported 2.1 million jobs, and generated €40 billion in total tax revenue in 2023. 

Rural areas have particularly benefited from this positive impact, as 55 percent of travelers in short-term rentals stayed outside of major cities in 2023. This trend is growing and the number of short-term rental nights stayed in rural locations has doubled since 2020.

Short-term rentals allow everyday people to travel in Europe in an affordable way, especially during major events. According to Oxford Economics, platforms like Airbnb have reduced the average price of overnight stays (either in a hotel or short-term rental) by 7 euros in major EU destinations in 2023¹. During big events, such as this summer’s Paris Olympics Games, local hosts listing their homes on short-term rental platforms help to make stays cheaper for travelers, while dispersing economic benefits to local families and businesses.

This flexible and affordable accommodation option is popular among European travelers, especially those traveling with family. In the EU, 67 percent of stays in short-term rentals were made by Europeans, and families with children accounted for nearly four out of 10 (39%) bookings.

While short-term rentals have brought significant benefits to EU travelers, families and businesses, the study challenges misconceptions about the impact of furnished tourist accommodations on housing supply and overtourism issues in urban centers. According to Oxford Economics, listings dedicated to short term lets available on Airbnb in Lisbon, Barcelona, Madrid, Paris, Berlin and Amsterdam do not exceed 0.5 percent of the local housing supply. The study estimates that if all listings on Airbnb were returned to the residential market, local house prices in these cities would fall by less than 0.7 percent.

“Over the years, short-term rentals have become a preferred solution for many everyday European families to travel affordably throughout Europe. By staying in a holiday home, these travelers have discovered new neighborhoods and landscapes,” said Juliette Langlais, EMEA Public Affairs Director at Airbnb. “By directing tourists away from crowded urban destinations where hotel supply, concentrated tourist flows and local challenges accumulate, short-term rentals have dispersed the benefits of tourism to local families and business in countless rural destinations.”

While Oxford Economics finds short-term rentals’ impact on housing to be minimal and limited to specific neighborhoods, excessive and poorly targeted regulations implemented in some European cities have unsurprisingly failed to address local challenges:

• In Paris, a de facto prohibition on renting a second home short term has failed to prevent  an increase in average rents and property prices, which have risen by 21% and 15% respectively since the current rules for short-term rentals were implemented six years ago.
• In Amsterdam, the number of tourist overnight stays has increased by 12% since 2019 despite the introduction of strict rules limiting short-term rentals to a maximum of 30 days per year for the entire city, and a corresponding 50% decrease in the number of stays in furnished tourist accommodations. Hotels have thus driven and benefitted from pent up tourist stays in Amsterdam at the expense of local families.

Such disproportionate short term rentals regulations have also shown negative side effects locally, including a loss of economic opportunities for local hosts and businesses. These regulations create a significant increase in the cost of stays, undermining the ability of everyday Europeans and families to enjoy these destinations. 

• In Amsterdam, Oxford Economics estimates a loss of 269M€ in total host earnings since the implementation of current short term rentals regulations. This is millions of euros that no longer go into the pockets of everyday hosts and small businesses, often to the benefit of large hotel chains. 
• In Paris, the average price of a hotel night has increased by 77%, despite the addition of nearly 4,000 new hotel rooms in six years.

The report shows that short term rentals are not the key driver of local challenges such as housing shortage and overtourism. Airbnb believes local regulatory responses should be evidence-based and targeted to neighbourhoods where there is a clear need while preserving the benefits that short-term rentals bring to locals and travelers.

“Short term rentals are part of the solution to build a more sustainable tourism that preserves the right of residents in the European Union countries to live, host, and travel affordably across Europe. Let’s continue to preserve them,” said Langlais.

 Airbnb has supported new EU rules, to ensure authorities have the data they need to make informed policy decisions which preserve the opportunities of short term rentals for local hosts, travelers and destinations, in line with the EU STR regulation framework.