The surge in anti-tourism sentiment in popular destinations like Barcelona and Maui has fueled a new wave of legislation aimed at targeting short-term vacation rentals. While crackdowns on short-term rentals are not a new phenomenon, they seem to be gaining momentum. According to Daniel Guttentag, an associate professor at the College of Charleston, cities are becoming more adept at regulating short-term rentals effectively. This trend is evident in Barcelona, where Mayor Jaume Collboni recently announced plans to ban short-term apartment rentals by the end of 2028.
The proposed regulations in Barcelona and Maui are positioned as a means to boost housing affordability and supply. In Maui, the Planning Commission voted in favor of a proposal to eliminate a significant share of the island’s short-term rentals. This move aims to transform short-term rentals into long-term housing inventory. Madeline List, a senior analyst with Phocuswright, points out that regulating short-term rentals offers a quicker solution to housing supply issues compared to other strategies. However, both Guttentag and List caution against viewing short-term rental restrictions as a magic bullet for housing affordability challenges.
While it is acknowledged that Airbnb may have a negative impact on housing costs, studies suggest that the impact is relatively small. List cites a study from New York, indicating that only about 9% of the citywide increase in rental rates could be attributed to Airbnb. This revelation raises questions about what factors are driving the remaining 91% of rent increases. List emphasizes that the effectiveness of short-term rental bans may vary significantly by destination, as luxury housing in some markets may not constitute affordable housing.
New York has notably ramped up enforcement of its short-term rental restrictions with a new law focusing on mandatory host registration. However, Airbnb has criticized the city’s approach, arguing that it has not achieved its intended goals. Despite this, the company advocates for reasonable regulations that benefit cities while enabling hosts to succeed and contribute to the local economy. Guttentag predicts that more destinations will follow the lead of cities like New York and Barcelona in enforcing stricter regulations on short-term rentals.
Looking ahead, Guttentag anticipates that similar moves to regulate short-term rentals will continue to be made in other locations. While these actions may help alleviate housing costs to some extent, they are unlikely to completely solve the affordability crisis. It is clear that addressing the challenges of short-term rentals requires a nuanced approach that balances the interests of all stakeholders involved. Barcelona and other cities facing similar issues must navigate a complex landscape to ensure the sustainable growth of their housing markets.