Crackdown on Short-Term Rentals Reshapes Cities Amid Overtourism Backlash
Short-term rentals continue to bring in far higher profits than traditional leases, with hosts earning 35 to 50 percent more. Yet, as cities struggle with rising housing costs and overtourism, new regulations are tightening control over platforms like Airbnb. A recent EU directive will soon force these companies to share data with national authorities, aiming to bring more transparency to the market.
In Salzburg, stricter rules were introduced in 2020 to tackle the growth of unregulated short-term rentals. The city made registration mandatory and imposed a tourist tax, with fines of up to €25,000 for those who failed to comply. Airbnb initially resisted but later adjusted to the new requirements.
A study by the University of Salzburg revealed a clear decline in listings since the rules took effect. In 2014, around 700 units were available on short-term rental platforms, but by 2022, that number had dropped to 500. Official data also showed a 30-40% reduction in unregistered listings, though some still operate illegally. Between 2022 and 2024, 109 hosts stopped offering short-term rentals, and new listings fell sharply. The issue extends beyond Salzburg, as residents in cities like Barcelona, Amsterdam, Venice, and Lisbon protest against overtourism and its impact on local housing. Meanwhile, the market is shifting, with new forms of temporary housing—such as mid-term rentals and micro-hotels—appearing. This trend, often called the 'hotelification' of residential and office spaces, is reshaping urban living. From May, the EU's new directive will require platforms to share data with authorities, further increasing oversight. The move aims to balance profitability with fairness, ensuring short-term rentals do not push housing costs beyond reach for local communities.
The decline in unregistered listings in Salzburg shows how regulation can curb illegal short-term rentals. With the EU's upcoming data-sharing rules, more cities may see similar changes. Yet, while stricter controls aim to ease housing pressures, the shift toward alternative lodging models suggests the market is still evolving.
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