EU Affordable Housing Act: what cities could restrict in short-term rentals and what it means for hosts

On 9 September 2026 the European Commission presented the Affordable Housing Act, the legislative proposal that puts the European Affordable Housing Plan into practice. For short-term rental (regim hotelier) hosts, the part that matters is a common framework under which national, regional and local authorities could limit short-term rentals in areas where housing is under severe pressure. The proposal is not law yet and changes nothing overnight, but it shows clearly where Europe is heading. Here is what it says, who criticises it and how to prepare early.

What the Affordable Housing Act is

The Commission adopted the European Affordable Housing Plan on 16 December 2025. One of its pillars deals with short-term rentals in areas under housing stress. The Affordable Housing Act is the next legislative step: a proposal for a regulation, accompanied by a Commission recommendation that encourages authorities to increase housing supply, for example by making better use of land and existing buildings and by simplifying permitting.

The Commission explains why the proposal was needed. Many European authorities have already introduced rules on short-term rentals, second homes or vacant dwellings, but they have had to apply general legal principles without a common framework showing when an area is under pressure and when a measure is justified. Cities and Member States asked for more legal certainty. The proposal does not create a new EU right to ban rentals; it sets out the conditions under which restrictions can be justified.

The new regulation would complement Regulation (EU) 2024/1028 on short-term rentals, which has applied since 20 May 2026 and deals with transparency and access to data. The Commission asks authorities to apply that regulation properly and to use its data to assess the impact of rentals on housing affordability.

What local authorities could do

The proposed mechanism has three steps. First, the authority establishes, based on common criteria, that an area is under housing stress. Then it decides whether to act and which measures suit local circumstances. Finally, any measure must be evidence-based, necessary, proportionate and targeted at the pressures identified.

For short-term rentals the bar is higher. According to the Commission, the authority would have to show that this activity has had a significant adverse effect on housing affordability or availability for at least three years, and that less restrictive measures would not be equally effective. The focus is on activity that, by reason of its scale, frequency or commercial character, is more likely to reduce the number of homes available for long-term renting.

The numbers behind the proposal

The Commission supports its proposal with several figures. According to its affordable housing page, short-term rentals grew by 93% between 2018 and 2024, 20% of homes in the EU were unoccupied, and social housing makes up only 6–7% of the housing stock. Demand remains strong: according to Eurostat, guests booked 951.6 million nights through Airbnb, Booking and Expedia in the EU and EFTA in 2025, 11.4% more than in 2024. Paris was the top city, with 26.3 million nights.

Reactions: support, and criticism from both sides

Airbnb criticised the proposal. In a statement quoted by RFI, the platform says the act “will not add a single home to the long term rental market, while adding regulatory uncertainty for hosts across European cities”. Airbnb wants clearer rules that distinguish people who occasionally rent out their home from large commercial operators.

Criticism also comes from the opposite side. Sarah Coupechoux of the French Fondation pour le Logement des Défavorisés says the act “is no half-measure”, but worries that some provisions could stop cities from acting quickly. According to RFI, an area would normally qualify only if average home prices are at least eight times local incomes and that ratio has been rising for a decade. The Council of European Municipalities and Regions (CEMR) welcomes the legal clarity but argues that affordability cannot be measured by comparing prices and incomes alone. An opinion piece published by EUobserver on 2 October 2026 notes that the binding part of the proposal focuses mainly on restrictions on non-primary use of housing, particularly short-term rentals.

The Romanian context

In Romania the proposal has no direct effect yet, and we have not found an official analysis showing whether any area would meet the housing-stress criteria. If you host in another EU country, the framework would be the same; what differs is the decision of each authority. None of this means the Romanian market is unregulated. Pressure on short-term rentals already comes from other directions:

• Classification. Since 8 July 2026, individual hosts are classified under Order 948/2026, with a limit of 7 rooms and 14 places. The status of the SE.SITUR platform is explained in our SITUR guide.
• The EU registration code. Regulation (EU) 2024/1028 has applied since 20 May 2026, but we have not found official confirmation that Romania has introduced the registration code it provides for.
• Seismic risk. In Bucharest, the ban on renting in seismic risk class I buildings became visible in 2026; details in our red-dot guide.
• Local taxes. Since 2026, under Local Council Decision (HCL) No. 462/2025, Constanța has applied a tourism promotion tax of 1% of the accommodation price and a fixed annual tax on rental apartments in Mamaia; details in our valuation guide for Constanța and Mamaia.
• Penalties. Operating without a classification certificate is punishable by fines of 40,000–50,000 lei; see our guide to fines.

We also followed the preparation of these rules in our analysis of the new EU regulations. The difference now is that the Commission has published the proposed text of the regulation.

How to prepare

1. Get classified and keep your file complete. A classified, documented activity is easier to defend in any discussion with authorities or neighbours.
2. Keep track of your own data. Record occupancy, average length of stay and revenue every month. If authorities analyse the market using platform data, it helps to have your own verifiable picture.
3. Follow local decisions. Local council meetings, decisions on taxes and the owners' association's decisions show changes early.
4. Invest in your relationship with neighbours. House rules, noise control and a quick contact for problems reduce tension. The neighbour-consent requirements are explained in our guide to Order 948/2026.
5. Prepare a plan B. Medium and long stays can fill the calendar; you will find ideas in our guide to off-season offers and long stays. Note that stays of more than 30 days have a different tax treatment.
6. If you have several units, think at portfolio level. Spreading across cities and types of stay reduces dependence on a single area; see our portfolio scaling guide.

Common mistakes

• Believing Brussels is banning Airbnb. The proposal does not ban rentals; it sets the conditions under which authorities may restrict them.
• Ignoring the topic because “it is only a proposal”. Analyses would have to cover at least three years, so today's activity may feed tomorrow's assessments.
• Treating compliance as just a cost. Classification and good relations with neighbours also protect your investment.

Frequently asked questions

Is the European Union banning Airbnb rentals?

No. The Affordable Housing Act is a proposal that leaves the decision to national, regional and local authorities. It sets the conditions under which restrictions would be justified: solid evidence, necessity, proportionality and targeted measures.

When could it take effect?

There is no timetable yet. The proposal is being debated in the European Parliament and must be negotiated with the Council of the EU, and the final text may differ from the one presented on 9 September 2026.

Will it apply in Romanian cities?

Only if an authority establishes that an area is under housing stress and decides to act, in line with the conditions of the regulation. So far we have not found any such initiative in Romania.

How does it relate to Regulation (EU) 2024/1028?

The 2024 regulation, applicable since 20 May 2026, concerns transparency and data sharing between platforms and authorities. The Affordable Housing Act would set out when and how rentals can be restricted. Data from the first regulation would underpin the analyses required by the second.