EU moves to curb short-term rentals as Milan housing costs bite

The European Union is set to propose rules that would help cities across the bloc clamp down on short-term rentals such as Airbnb, according to plans seen by AFP and reported by The Local Italy on Saturday. The initiative is aimed at tackling rising house prices in popular urban destinations, where the proliferation of holiday lets has squeezed out long-term residents.

For Milan, the timing is acute. Italy's financial and fashion capital has become one of Europe's most expensive cities for housing, and the growth of short-term lets has been a recurring theme in the international press coverage of the city's property market. The EU's planned framework would give local authorities a legal basis to restrict the number of days a property can be rented out to tourists, or to require registration of such lets.

The EU proposals, expected to be formally laid out in the coming weeks, would represent a significant shift in how cities like Milan manage their housing stock. Under current Italian rules, many municipalities have struggled to enforce limits on short-term rentals, with enforcement patchy and legal challenges frequent. A clear EU-level framework would change that calculus, giving cities like Milan a stronger hand to regulate platforms that have grown rapidly since the last decade.

The move comes as housing affordability has emerged as a defining political issue across Europe, with protests in Spain, Portugal and elsewhere over the impact of mass tourism on local communities. Milan, though less dependent on tourism than Rome or Venice, has seen rents climb steadily, driven by an influx of international workers, students and the expansion of its role as a business hub. Foreign correspondents have often noted the paradox of a city that attracts global talent while its own young residents struggle to find affordable accommodation.

The EU's interest in the issue reflects a broader recognition that housing is no longer purely a national competence. For the Lombardy bureau, the rules could have a direct effect on the thousands of apartments listed on short-term platforms across the city and its lake districts, from Como to Garda. Local administrators have long complained that they lack the tools to distinguish between genuine hospitality businesses and landlords who have converted residential units into de facto hotels.

The precise mechanics of the EU plan remain to be seen, but the direction of travel is clear. The Local Italy reported that the rules would be designed to help European cities curb short-term rentals in a bid to tackle rising house prices. Whether the final text gives cities the power to cap rental days or simply to demand better data from platforms will determine how significant the change is for Milan's property market.

What is certain is that the debate over short-term rentals is no longer confined to tourist boards and city councils. It has become a question of economic policy, pitting the interests of property owners and the tourism industry against the need for stable, affordable housing for residents. Milan, as Italy's wealthiest and most internationally exposed city, will be watching closely.