European Commission unveils Affordable Housing Act targeting short-term rentals and vacancies

Commission proposal and scope

The European Commission presented the Affordable Housing Act on 9 September 2026 to the European Parliament housing committee. European Commissioner for Housing Dan Jørgensen outlined the regulation, explaining that vacant properties and short-term rentals contribute to housing difficulties across European cities. The measure offers voluntary regulatory tools to local authorities rather than imposing mandatory requirements on member states. Jørgensen also stated that European institutions must simplify administrative procedures for construction, streamline building permits, and support younger residents seeking homes.

“In our view, vacant housing and short-term rentals contribute to the problem in many locations. However, we recognise the importance of the principle of subsidiarity and the need to respect local democracy.”

Support from institutions and socialists

European Council President António Costa welcomed the publication of the initiative, calling housing availability an urgent issue across the continent. The Group of the Progressive Alliance of Socialists and Democrats in the European Parliament supported the framework, arguing that it allows mayors and local authorities to curb speculation and manage land use effectively. European Committee of the Regions President Kata Tüttő described the act as an important first step that recognises the operational role of municipal governments. However, Tüttő pointed to a contradiction between the housing initiative and the proposed 2028–2034 multiannual financial framework, which reduces financial instruments that local authorities use to fund housing strategies. Italian hotel association Federalberghi also defended the proposal, stating that municipal discretion prevents unwarranted interference with property owners.

Conservative pushback on property rights

Conservative lawmakers expressed direct opposition during Commissioner Jørgensen's parliamentary hearing in Brussels. Forza Italia MEP Marco Falcone, vice-head of the Italian delegation within the European People's Party and member of the housing committee, called on the Commission to halt and withdraw the text. Falcone argued that the proposal focuses excessively on short-term rentals and second homes while neglecting supply expansion, urban regeneration, public-private investment partnerships, and tax incentives. He maintained that imposing limits risks worsening conditions rather than resolving housing shortages.

“The housing crisis is addressed by increasing supply and investments, not by introducing new restrictions.”

Criticism from green and left lawmakers

Lawmakers on the left and within the Greens and European Free Alliance argued that the proposal remains overly deferential to commercial real estate interests. Greens/EFA housing coordinator Gordan Bosanac warned that local governments face restrictive legal conditions before taking action, such as proving that short-term rentals harmed housing availability for at least three consecutive years and that no alternative measure exists. Italian MEP Ilaria Salis, representing Alleanza Verdi e Sinistra and The Left, stated that the draft fails to address large investment funds and lacks vital tools such as rent caps, targeted subsidies, and anti-speculation taxation.

“Good intentions do not put a roof over anyone's head. We will continue inside and outside Parliament to work to improve this text and for genuine regulation of the housing market.”