EU moves to help cities curb tourist rentals as Venice strains

The European Union is set to lay out rules helping European cities clamp down on short-term rentals such as Airbnb in a bid to tackle rising house prices, according to plans seen by AFP on Friday, The Local Italy reported. The proposed framework would give municipal authorities new tools to regulate the explosive growth of holiday lets that have transformed residential neighbourhoods across the continent's most visited cities.

For Italy, the measure arrives as the country grapples with the dual pressures of record tourism and a housing affordability crisis that has pushed residents out of historic city centres. Venice, in particular, has become a symbol of the tension between the visitor economy and the right to housing, with the city's population declining steadily as apartments are converted into short-term holiday accommodation.

The EU's planned rules would address a long-standing complaint from city governments that they lack the legal instruments to control platforms operating across borders. Venice's municipal authorities have repeatedly called for national and European intervention, arguing that the city's unique urban fabric cannot sustain unlimited tourist accommodation without hollowing out its residential communities.

The timing of the proposal is significant: it comes as European cities from Barcelona to Amsterdam have already imposed their own restrictions on short-term lets, creating a patchwork of regulations that the EU framework would seek to harmonise. For Italian cities beyond Venice — including Florence, Rome and Trieste — the rules could provide a template for managing the balance between tourism revenue and residential stability.

Trieste, while less overwhelmed by mass tourism than Venice, has seen growing interest from short-term rental operators as cruise passenger numbers rise and the city markets itself as a Central European cultural destination. Housing costs in the city have climbed in recent years, and local observers have watched the Venice experience as a cautionary tale of what happens when rental regulation lags behind platform growth.

The EU proposal, once formally presented, would likely face a lengthy negotiation with member states and the European Parliament. Tourism-dependent economies, including Italy, must weigh the economic benefits of the sector against social costs that have become increasingly visible in the country's most popular destinations.