European Commission unveils Affordable Housing Act with rules on tourist rentals

European Commission unveils housing package

On 9 September 2026, European Commission Executive Vice-President Teresa Ribera and Housing Commissioner Dan Jørgensen presented the Affordable Housing Act. The legislative proposal creates a binding legal framework intended to shield local authorities when they introduce restrictions on short-term tourist rentals and second-home purchases in residential areas under severe pressure. Alongside the binding regulation, the Commission published non-binding recommendations urging member states to impose taxes on vacant properties, facilitate conversions of commercial offices into residential housing, and establish a 60-day processing cap for simple building permits.

Ribera presented the package during a committee meeting at the European Parliament, explaining the rationale for public intervention in private markets.

When the market fails to deliver something as fundamental as an affordable home, public authorities have a responsibility to act.

Stressed zone thresholds and local impact

Under the Commission proposal, an area qualifies as a stressed housing zone if the average purchase price of a home equals at least eight years of local average income, provided that ratio worsened over the prior decade. Areas where purchasing a home requires ten or more years of average income qualify automatically regardless of previous trends. Data from notary and national statistics offices shows that 26 of the 30 most populated municipalities in the Canary Islands satisfy these criteria based on 2023 figures.

In the southern Tenerife municipality of Adeje, buying a home required 24.57 years of average salary in 2023, while Guía de Isora required 24.32 years. Large urban centres also exceed the automatic qualification mark, with Santa Cruz de Tenerife at 12.32 years and Las Palmas de Gran Canaria at 10.75 years. Municipalities such as Ingenio fall below the threshold at 7.29 years, while Arucas, Agüimes, and Arrecife were excluded because local income grew faster than home prices between 2015 and 2023.

Political reactions and local implementation disputes

In Spain, Housing Minister Isabel Rodríguez stated that the European proposal aligns with domestic policy priorities. Barcelona Mayor Jaume Collboni welcomed the draft as backing for his municipal plan to eliminate 10,000 tourist apartment licenses by 2028, arguing that public authorities require tools to prevent housing from functioning purely as financial assets. Barcelona councillor Gemma Tarafa of Barcelona en Comú also backed market intervention, demanding immediate limits on seasonal rentals, speculative acquisitions, and coliving units.

However, municipal opposition leader Daniel Sirera of the Partido Popular argued the European text does not endorse blanket prohibitions. Sirera stated that Brussels permits restrictions only when accompanied by proportionality assessments, zone-specific justifications, and a five-year maximum duration, placing Collboni's 2028 target into question.

Industry pushback and legislative hurdles

Real estate developer and landlord associations expressed opposition to the regulatory split in the draft. The Association of Promoters and Builders of Spain (APCEspaña), through its president Xavier Vilajoana, argued that binding restrictions would penalize construction while vital supply-side incentives remain non-binding recommendations. The rental owners association ASVAL observed that the EU text establishes strict evidentiary requirements, mandating that local governments objectively demonstrate market stress and a causal link before capping activity.

European Parliament member Borja Giménez Larraz of the European People's Party described the legislative restrictions as an intrusion into the EU single market and free competition. The proposal now moves to negotiations between the European Parliament and the Council of the European Union.