On June 21, Barcelona’s mayor Jaume Collboni made a bold announcement that shook the travel industry: by November 2028, short-term rentals would be banned in the city. This decision, aimed at tackling what Collboni described as “Barcelona’s biggest problem”—the housing crisis—intends to reclaim the 10,000 apartments currently listed on platforms like Airbnb, bringing them back into the long-term housing market. This move is not isolated; cities around the world are tightening regulations on short-term rentals, raising important questions about the future of travel and tourism.
Barcelona’s housing crisis is a significant issue. Locals and workers are being priced out of the market as property owners convert apartments into lucrative short-term rentals. The return of these properties to the long-term rental market is expected to ease the housing shortage and stabilize rental prices. Similar measures have been taken in cities like New York, Berlin, and Santa Monica, each aiming to address their unique housing challenges.
In New York City, since September 2023, renting out an apartment as a short-term let has been illegal unless the owner is registered with the city and present during the stay. Berlin initially banned short-term rentals in 2014, reintroducing them under strict regulations in 2018. In California’s coastal cities, such as Santa Monica, short-term rentals face either outright bans or severe restrictions.
These actions are part of a broader movement questioning the benefits and drawbacks of tourism for local communities. With Airbnb dominating the short-term rental market, cities are examining whether the convenience for tourists justifies the disruption to local housing markets and communities.
Since its launch in 2007, Airbnb has transformed the travel industry by offering flexible, local-style accommodations that traditional hotels couldn’t match. However, the backlash against Airbnb has grown as locals blame the platform for rising housing costs and the influx of unregulated mini-hotels in residential areas.
Without a robust short-term rental market, what changes can we expect in travel?
- Higher Accommodation Costs for Tourists: Lucy Perrin, commissioning travel editor and hotel specialist at The Times, believes that eliminating short-term rentals will likely lead to higher accommodation prices. Hotels, facing reduced competition, might seize the opportunity to increase rates. This trend has already been observed in New York City, where average hotel room rates have soared to $300 per night following the short-term rental ban.
- Challenges for Families: Caitlin Ramsdale of the family travel platform Kid & Coe highlights a significant downside for families. Hotels often fail to meet the needs of larger families in terms of room layout and affordability. Short-term rentals have provided a practical alternative for families looking to explore cities without breaking the bank.
- Authentic Travel Experiences: On the flip side, the absence of short-term rentals could enhance the authenticity of travel experiences. Perrin suggests that cities like Barcelona, less overrun by tourists and more populated by locals, will offer richer cultural experiences. Tourists might be encouraged to explore less central, more residential neighborhoods, broadening their perspectives and interactions.
The Debate on Housing Prices
Does banning short-term rentals genuinely alleviate housing crises? Studies, including one by Harvard Business Review, suggest that short-term rentals are not the primary drivers of high rents. Instead, comprehensive regulations rather than outright bans might be more effective in balancing the needs of locals and tourists.
The issue isn’t purely about numbers but also about the sentiment of local populations. In Spain, widespread discontent with overtourism has driven authorities to prioritize the well-being of residents over the demands of tourists. Similar sentiments are echoed in other heavily touristed regions, such as Cornwall in the UK, where the prevalence of second homes and holiday rentals has long been a contentious issue.
Rather than imposing outright bans, some cities have adopted more nuanced approaches. Berlin, for instance, limits short-term rentals to 90 days per year for owner-occupiers. This allows part-time hosts to earn supplemental income without significantly impacting the housing market. The UK is considering similar measures. However, implementing and enforcing such regulations can be complex and costly.
For travelers, the phasing out of short-term rentals presents a mixed bag of outcomes. Hotels and B&Bs stand to benefit the most from reduced competition, potentially leading to higher prices but also possibly better service and investment in quality.
Yet, the shift could drive travelers to be more creative in their accommodation choices, seeking out less touristy, more residential areas, or even alternative destinations where short-term rentals are still available. This could lead to a more balanced tourism landscape, where the benefits are more equitably distributed between tourists and locals.
As cities like Barcelona take bold steps to regulate or ban short-term rentals, the landscape of travel and tourism is set to change. While the primary goal is to address housing crises and restore balance to local communities, the implications for travelers are significant. Higher accommodation costs, challenges for families, and a potential shift towards more authentic travel experiences are all on the horizon.
The key will be finding a balance that satisfies both locals and visitors, ensuring that tourism remains sustainable and beneficial for all. Whether through outright bans or nuanced regulations, the future of short-term rentals will shape the way we travel for years to come.
