Short-term rentals: Global protests over the housing crisis
- Paul Aage Hegvik
- Feb 26
- 10 min read
Updated: Mar 14
The rise of short-term rental platforms like Airbnb, Vrbo, and Booking.com has transformed the way people travel and invest in real estate.
What began as platforms for homeowners to rent out spare rooms has grown into a multi-billion-dollar industry, reshaping housing markets and tourism worldwide. While the flexibility and unique experiences offered by short-term rentals have been celebrated, concerns over housing availability, rising rents, and uneven regulatory frameworks have sparked debates and policy changes across the globe.
Six million rental listing
Airbnb, founded in 2008 in San Francisco, has grown to include over six million rental listings in more than 100,000 cities worldwide. Similarly, competitors like Vrbo and Booking.com offer millions of listings, catering to diverse traveler preferences. These platforms have empowered hosts to earn extra income while providing travelers with unique, authentic accommodations.
Their rapid growth has also introduced challenges, especially in urban areas where housing is scarce.
Airbnb dominates the market, but it is not the only company influencing the global short-term rental landscape.
Vrbo (Vacation Rentals by Owner): Focuses on whole-home rentals and is popular for family trips or group travel.
Booking.com: While known for hotels, it also offers a growing selection of vacation homes and short-term rentals.
Expedia: Includes vacation rental options alongside its broader travel services.
TripAdvisor Rentals: Features vacation homes as part of its travel planning ecosystem.
Plum Guide: A high-end rental platform offering a curated selection of luxury properties.
HomeAway: Part of the Vrbo family, with a strong focus on global vacation rentals.
Holidu: A metasearch platform that aggregates listings from multiple rental sites for price comparison.
9flats: Popular in Europe, it offers a variety of short-term rental accommodations.
Couchsurfing: A unique platform emphasizing cultural exchange by connecting travelers with locals for free stays.
Housing market disruptions
Short-term rentals have proven to be more lucrative for property owners than long-term leases, prompting many to convert homes into vacation rentals. This shift has reduced the availability of housing for local residents, contributing to rising rents and housing shortages. In the United States, for example, the average national rent increased by 15% between 2021 and 2022, with cities like Seattle, Cincinnati, and Austin experiencing spikes of over 30%.
According to Inside Airbnb, property management companies play a significant role in this trend. Approximately a quarter of Airbnb hosts own nearly two-thirds of all listings on the platform. This concentration of ownership exacerbates housing challenges by reducing the supply of homes available for local families.
Global regulatory responses
Governments and local authorities have introduced a variety of regulations to address these issues. Cities like New York, Barcelona, and Paris have implemented strict rules to limit the number of short-term rental units. For instance:
New York City, USA: Hosts must register their properties and prove they live on-site. Non-compliance can result in fines ranging from $1,000 to $5,000.
Paris, France: Hosts can rent out primary residences for up to 120 days annually and must register with the local town hall. Renting beyond this limit requires converting the property into a «furnished tourist accommodation.»
Amsterdam, Netherlands: A license is required for short-term rentals, limiting rentals to 30 nights per year and four guests at a time.
Barcelona, Spain: The city has banned short-term rentals of private rooms and requires licenses for entire properties, with a dedicated team monitoring illegal listings.
Venezia, Italy: Authorities plan to cap short-term rentals at 120 days per year, with violators facing strict enforcement measures.
Platforms like Airbnb are part of a global trend that privatizes and commercializes spaces, leading to the transformation of housing into a commodity rather than a basic human right. Evan D. McKenzie Professor of political science
Addressing housing crisis
As short-term rentals continue to shape housing markets around the world, different leaders and citizens are taking action to tackle the housing crisis exacerbated by this trend.
In Maui County in Hawaii in USA, mayor Richard Bissen has proposed a significant initiative to phase out short-term rentals. His goal is to alleviate housing shortages that have been worsened by the proliferation of such rentals. Mayor Bissen's proposal is a key agenda item for the county council, aiming to create more long-term housing opportunities for residents.
Meanwhile, across the Atlantic in Spain, Prime Minister Pedro Sánchez has raised the possibility of imposing a 100% tax on non-EU buyers, particularly targeting British citizens following Brexit. This measure is intended to curb housing speculation, which has been driving up prices and contributing to the housing crisis. The move seeks to address the negative impacts of short-term rentals on the Spanish property market.
In New York City, Council Member Farah Louis has introduced a bill aiming to restore short-term rental rights, countering the stringent regulations imposed in 2023. This legislative action reflects ongoing debates in the city about finding a balance between tourism benefits and housing needs.
Fighting for stricter regulations
U.S. Senator Elizabeth Warren is one of many politicians working to curb the impact of short-term rentals on housing affordability. She has been particularly vocal about the issue, advocating for stricter regulations to protect long-term housing availability.
She has called for stricter regulations on platforms like Airbnb to curb rising rents and housing shortages, particularly in cities where short-term rentals reduce the availability of long-term housing.
Her proposals include:
Stronger local regulations to limit the number of short-term rentals in residential areas.
Higher taxes and fees on short-term rental properties to discourage investors from converting long-term housing into vacation rentals.
Better enforcement mechanisms to prevent illegal listings and ensure compliance with local laws.
She has also pushed for federal oversight and greater transparency from rental platforms, arguing that unchecked growth in short-term rentals worsens affordability issues for working families.
David Harvey, a renowned social theorist and geographer, has criticized platforms like Airbnb for exacerbating urban housing crises. He argues that short-term rentals contribute to the commodification of housing, where homes are treated as financial assets rather than places to live.
Harvey's perspective aligns with his broader critique of neoliberal urbanism, which prioritizes profit-driven development over social needs. He sees Airbnb as part of a larger trend where cities cater to tourism and wealthy investors at the expense of local residents, leading to gentrification and displacement.
Short-term rental platforms like Airbnb contribute to the housing affordability crisis, making it more difficult for working families to find an affordable place to live. Elizabeth Warren – U.S. Senator
While short-term rentals bring tourism revenue, they can drive up rents for local residents and contribute to housing shortages in many cities. Matt Hancock Former UK Health Secretary
Airbnb represents a commodification of housing that is not just about offering a place to stay, but about creating an economic system that prioritizes profit over people's basic need for shelter. David Harvey Social theorist and geographer
In Greece, government officials have been debating new legislation to implement stricter regulations on short-term rentals, including measures such as banning windowless basements and freezing new registrations in central Athens. These efforts aim to address the growing tensions between the tourism industry and housing accessibility.
Mallorca: Taken to the streets
Antoni Noguera, the former mayor of Palma de Mallorca, has been a vocal critic of short-term rentals, particularly those facilitated by platforms like Airbnb. In 2018, under his leadership, Palma became the first Spanish city to ban almost all short-term rentals of private apartments. Noguera emphasized the importance of maintaining the city's livability for its residents, stating, «Palma should be a habitable city and the worst that can happen is the inhabitants have to leave.»
This decisive action was driven by concerns that the proliferation of vacation rentals was contributing to a sharp rise in rental prices, making housing increasingly unaffordable for locals. The ban specifically targeted short-term rentals in apartment buildings, while still permitting such rentals in detached homes under certain conditions. Noguera's administration aimed to set a precedent for other cities facing similar challenges, balancing the benefits of tourism with the needs of permanent residents.
In the years following the ban, Palma has continued to enforce strict regulations on short-term rentals to address housing affordability and quality of life for its citizens. These measures reflect an ongoing commitment to ensuring that tourism does not compromise the well-being of local communities.
Despite the 2018 ban on most short-term rentals in Palma, protests continue because many residents believe the measures haven't gone far enough. Locals argue that:
Enforcement is weak – Illegal short-term rentals persist, with landlords finding loopholes to continue operating on platforms like Airbnb.
Housing prices are still rising – Even with restrictions, property prices and long-term rents remain unaffordable for many residents. Investors continue buying homes for tourism, limiting housing options.
Over-tourism strains local life – Many feel that tourism-focused policies still prioritize visitors over residents, leading to overcrowding and loss of community spaces.
Valencia: Fines of up to €600,000
These ongoing frustrations drive protests, as residents demand stricter enforcement, tougher regulations, and policies that truly prioritize local housing needs.
Former mayor Joan Ribó of Valencia has actively addressed the challenges posed by short-term rentals. Under his leadership, the Valencia City Council has implemented several measures to regulate and control the proliferation of tourist accommodations:
Limiting Tourist Apartments: In January 2025, the council approved an ordinance restricting tourist apartments to 2% of the total housing in each neighborhood.
This regulation aims to prevent the oversaturation of short-term rentals in residential areas.
Fines for Illegal Rentals: To combat unregistered and unauthorized tourist accommodations, the city has imposed fines of up to €600,000 on illegal short-term rental operators. This stringent measure seeks to deter landlords from bypassing regulations and ensure compliance with local laws.
Balancing Tourism and Housing: While recognizing the economic benefits of tourism, Mayor Ribó's administration strives to balance these with the housing needs of residents. The regulations allow entire buildings to be converted into tourist accommodations under specific conditions, aiming to control the impact on local communities.
Commitment to local collaboration
Airbnb's CEO, Brian Chesky, has addressed concerns regarding the impact of short-term rentals on housing markets and the resulting regulatory challenges. In response to increasing scrutiny and regulations in various cities, Chesky has emphasized Airbnb's commitment to collaborating with local authorities to develop sensible short-term rental policies. He has highlighted the company's efforts to support renters and communities, including advocating for policies that allow renters to share their spaces and providing financial assistance to organizations helping renters avoid eviction.
Chesky has also acknowledged the need for Airbnb to adapt its business model in light of these challenges. He has noted that long-term stays, defined as 28 days or more, now constitute a significant portion of Airbnb's bookings, increasing from 13-14% pre-pandemic to 17-18% in recent times. This shift indicates Airbnb's strategic move to diversify its offerings and reduce reliance on short-term rentals, which are more susceptible to regulatory constraints.
Regarding specific regulatory environments, Chesky has expressed concerns about overly restrictive measures. For instance, in response to New York City's stringent short-term rental regulations, Airbnb has argued that such rules have unintended consequences, including driving up travel costs and failing to address the underlying housing crisis. The company contends that these regulations disproportionately impact communities and do not effectively solve housing affordability issues.
Impact on housing and tourism
Positive Outcomes:
Improved Housing Access: By restricting short-term rentals, more apartments are available for long-term residents, helping to curb soaring rents.
Neighborhood Preservation: The rules aim to reduce the strain on local communities, preventing overtourism in residential areas.
Challenges and criticism
Economic impact: Some property owners and businesses reliant on tourists have criticized the ban, arguing that it reduces income opportunities.
Tourist numbers: While the regulation may limit accommodation options, Mallorca remains a top destination, so overall tourist numbers have stayed high, albeit more concentrated in hotels.
Illegal rentals: Despite the regulations, enforcement is tricky, and many landlords continue to operate in the grey market, making it difficult to fully eliminate the problem.
Australia: Affordable housing struggles
In Australia, residents like Bessminda Groves from Byron Bay have expressed challenges in finding affordable housing due to property owners opting for more profitable short-term listings. This has led to a severe housing crisis in the region, highlighting the global nature of this issue.
Market trends and economic impact
The boom in short-term rentals has also driven demand for investment properties. NASDAQ reported a 44% increase in U.S. vacation home sales in 2020 compared to the previous year. Similarly, a report from Pacaso highlighted a 235% rise in luxury vacation home sales in 2022 compared to pre-pandemic levels. In some regions, as many as one in four properties is listed as a vacation rental.
While these trends have created opportunities for investors and property owners, they have also deepened housing crises in tourist-heavy cities. Research from Australia reveals that short-term rentals account for a significant share of vacant homes, prompting local governments to encourage landlords to return properties to the long-term rental market.
The path forward
As short-term rentals continue to grow, the need for balanced solutions becomes increasingly urgent. Policymakers must navigate the fine line between fostering tourism and protecting local housing markets. Collaborative efforts between platforms like Airbnb, Vrbo, Booking.com, and others, alongside governments and communities, are essential to ensure that the benefits of short-term rentals do not come at the expense of affordable housing and sustainable urban development.
Short-term rental platforms have revolutionized travel and real estate, offering unparalleled flexibility and economic opportunities. However, their rapid expansion underscores the importance of thoughtful regulation to address the unintended consequences of this global phenomenon.
