The Commissioner for Housing (and Energy) of the European Commission, Dan Jorkensen, expressed strong concerns about the increase in the number of short-term rentals of homes and other accommodation (airbnb and other platforms) yesterday from Nicosia. He also announced measures to limit the reservation of houses and apartments for the needs of short-term rentals by visitors, especially in areas where the housing problem for permanent residents is acute.
Speaking at the Informal Ministerial Meeting on Housing, in Nicosia, in the framework of the Cyprus Presidency of the Council of the EU, Mr. Jorgensen said that the number of short-term rentals has almost doubled between 2018 and 2024 and that in some neighbourhoods and tourist spots the share of short-term rentals represents up to 20% of the housing stock.
During a press conference, the Commissioner explained that the mobilization of funds for housing investments, the simplification of the issuance of building permits, but also the limitation of the negative effects of the increasing number of short-term rentals will be promoted in the coming period.
According to Mr. Jorgensen, a broader set of tools must be used by the Union and the Member States that can be used to ensure that normal people, with normal jobs, can actually live where they live and work."
He also referred to the increase in house prices by over 60% since 2013, while average rents have increased by about 20%, as another aspect of the housing crisis in the EU. On initiatives to attract more investment in affordable housing, Mr Jorgensen said that a "pan-European investment platform will allow different market players to work together and mobilise finance".
An additional €10 billion from the EU budget will be mobilised this year, while financial institutions have pledged €375 billion by 2029.
He also spoke about the state aid aspect, saying that "the rules on state aid were quite rigid and we changed them to make it possible for member states to support housing in the broadest sense." He added: "In Europe we want a housing policy that puts people before profit, social inclusion and prosperity above profit."
For his part, Interior Minister Konstantinos Ioannou stressed the urgent need to increase the supply of houses and apartments. He attributed the decline in housing investment across Europe to rising construction costs, high interest rates and economic uncertainty, and added that "addressing these imbalances requires targeted policy interventions, stronger incentives and closer cooperation between the public and private sectors."
