The Battle for Our Cities: Can Regulations Curb the Rise of Short-Term Rentals?
Barcelona, Amsterdam, Venice – the list of cities grappling with the negative impacts of overtourism, fueled by the explosion of short-term rentals, is growing. Homeowners leveraging platforms like Airbnb and Booking.com are disrupting traditional hotels and, crucially, driving up housing costs for residents.
Salzburg’s Experiment: A Case Study in Regulation
In 2020, Salzburg, Austria, implemented a nightly tax law requiring short-term rental hosts to register with the authorities and pay local taxes. Failure to comply can result in fines of up to €25,000. Initially, Airbnb protested, citing alleged constitutional and data privacy violations, but ultimately complied. For the past four years, a dedicated city department has systematically monitored compliance, even responding to anonymous reports of illegal rentals.
A Marked Decline in Airbnb Listings
A recent study by the University of Salzburg, the first long-term scientific investigation of its kind in Austria, reveals the impact of these regulations. Researchers analyzed motivations, market trends, and the consequences of the rules between 2018 and 2025. The findings reveal a significant decrease in listings on platforms like Airbnb. Approximately 700 properties were available for short-term rent eight years ago; that number has fallen to 500.
Between 2022 and 2024 alone, 109 Salzburg hosts ceased short-term rentals, and the number of latest listings has significantly declined. However, the market is evolving. New forms of temporary accommodation are emerging, including mid-term rentals (30 days to six months) and micro-hotels.
The “Hotelization” of Residential Space
Researchers describe this shift as a “hotelization” of both residential and office spaces, driven by increasing automation of management processes. Short-term rentals remain highly profitable, offering owners 35 to 50 percent higher revenue compared to long-term leases.
EU-Wide Regulations on the Horizon
Building on national and local efforts like Salzburg’s, the European Union will introduce new regulations in May requiring platforms like Airbnb to share data with a national authority. This aims to promote fair competition and increase transparency in the vacation rental market.
Key Statistics
80 percent of listed properties are available for more than three months per year; 30 percent are listed for over 300 days.
64 percent of short-term rental hosts offer two or more properties.
30 percent decrease in available listings between 2018 and 2025, according to the Salzburg study.
What Does This Mean for Travelers and Residents?
These regulatory changes signal a broader trend: cities are actively seeking to regain control over their housing markets and manage the impacts of tourism. Expect increased scrutiny of short-term rental listings, higher compliance costs for hosts, and potentially fewer options for travelers. The rise of mid-term rentals and micro-hotels may offer alternative solutions, but the fundamental challenge – balancing the needs of residents, tourists, and property owners – remains.
Pro Tip:
If you’re planning a trip and considering an Airbnb, check local regulations to ensure the listing is compliant. Supporting legal rentals helps ensure a sustainable tourism ecosystem.
FAQ
Q: Will these regulations eliminate short-term rentals entirely?
A: No, but they are likely to significantly reduce the number of available properties and increase costs for hosts.
Q: What is the EU’s role in regulating short-term rentals?
A: The EU is introducing regulations to increase transparency and ensure fair competition by requiring platforms to share data with national authorities.
Q: How are cities adapting to the decline in Airbnb listings?
A: Cities are seeing the emergence of mid-term rentals and micro-hotels as alternative forms of temporary accommodation.
Q: What are the benefits of regulating short-term rentals?
A: Regulation can help stabilize housing costs for residents, promote fair competition, and ensure a more sustainable tourism industry.
Did you understand? A significant portion of short-term rental hosts manage multiple properties, suggesting a professionalization of the market beyond individual homeowners.
Want to learn more about sustainable tourism and responsible travel? Explore our other articles on urban planning and the future of hospitality.
