Cities like Barcelona and New York have chosen to prohibit short-term rental companies, accused of driving up housing costs and harming local residents.

On June 21, Barcelona’s mayor, Jaume Collboni, announced plans to ban short-term rentals in the city starting in November 2028, aiming to address what he describes as Barcelona’s biggest issue: the housing crisis, which has pushed residents out of the market due to skyrocketing property prices. The measure seeks to return 10,000 apartments currently designated for short-term rentals on Airbnb and similar platforms to the residential market.

Barcelona is not alone in this strict approach. Since September 2023, it has been illegal to rent out apartments short-term in New York unless the owner resides in the city and is present during the rental, also as a response to the housing crisis.

Berlin banned Airbnbs and short-term rentals in 2014, though some flexibility was reintroduced in 2018. Many coastal cities in California, such as Santa Monica, also prohibit or impose severe restrictions on short-term rentals.

Airbnb dominates the short-term rental market, with more than 50% of all online bookings. It and other platforms, such as VRBO, Booking.com, and Expedia.com, are facing scrutiny, raising debates about who truly benefits from tourism and how to balance the advantages for tourists and local residents.

Since its launch in 2007, Airbnb has significantly disrupted the tourism sector, offering flexible accommodations in cities worldwide with the promise of “living like a local,” something hotels cannot provide.

In recent years, however, the brand has faced backlash. It has been accused of driving up housing costs and harming local residents, who feel forced to live alongside unregulated hotels in their neighborhoods.

“Short-term rentals offer the possibility of staying in a more authentic location,” says Lucy Perrin, travel editor and hotel expert for the British newspaper The Times. “It’s a less impersonal, more local experience, and obviously, prices can be better,” she explains. “They tend to work well for families, groups, and more adventurous travelers. People who prioritize safety and knowing exactly what they’ll get usually opt for hotels.”

It seems clear that removing short-term rentals from the travel market will lead to higher accommodation prices for tourists. “I’d be surprised if hotels don’t take advantage of this situation,” says Perrin.

For Caitlin Ramsdale from the family travel platform Kid & Coe, families will be the most affected.

“There are many groups for whom having hotels as the only option simply doesn’t work,” she says. “Although the hotel sector has made significant efforts to accommodate families, room configurations and prices aren’t viable for most families looking for short trips, especially those with two or more children. There needs to be a way to reconcile city goals with the needs of this segment of travelers. It’s a huge loss for parents wanting to show the world to their kids.”

The question remains: does banning or restricting short-term rentals truly reduce housing costs or influence the availability of properties?

A Harvard Business Review study on the impact of New York’s ban, published earlier this year, concluded that short-term rentals are not the most significant factor behind rising rents in the city. The study also indicated that creating regulations instead of bans would provide better benefits for the city and local residents.

One clear outcome of the ban has been a rise in New York hotel room rates, which reached a record average of $300 (about R$1,650) per night.

But why do tourism boards and city councils resort to bans? The real reason may not only be about numbers but also about how locals feel about tourism.

Spain, for instance, is the epicenter of Europe’s overtourism crisis. Local residents strongly oppose tourism, which they perceive as an industry that does not benefit them. This sentiment has been growing in traditional destinations like Málaga, Mallorca, the Canary Islands, and Barcelona itself.

In overcrowded tourist cities, locals are often priced out of the housing market. They are forced to live in cars or endure long commutes to work every day.

In such situations, it seems immensely unfair to see cities filled with short-term rental properties that remain vacant for most of the year and could otherwise benefit local residents.

This is not the sole cause of the housing crisis. Wage stagnation, especially for public-sector employees, and limited housing programs also play a role. However, short-term rentals are certainly the most visible factor.

In British Columbia, Canada, local Premier David Eby summarized the issue succinctly when introducing new short-term rental rules for the province: “If you are flipping homes, if you are buying places for short-term rentals, if you are purchasing a home to leave it empty, we have sent this message consistently, publicly, and repeatedly: don’t let families and individuals looking for a place to live compete with your investment dollars.”

Whether successful or not, these bans send a message to local residents: politicians are listening to their concerns and will prioritize them over tourists. However, there is an alternative to a total ban.

Many destinations, like Berlin, limit owners to a maximum rental period of 90 days per year. This restriction allows temporary hosts to continue earning extra income but prevents professionals from buying properties to turn them into full-time short-term rental locations.

For tourists, the news seems predominantly negative. When it comes to limiting short-term rentals, hotels and platforms like Airbnb appear to be the primary winners. With demand exceeding supply, they can charge high prices with little competition.

But Perrin sees some benefits for the tourist experience. “I think banning short-term rentals will make trips to cities like Barcelona more authentic,” she says. “When locals are pushed out of city centers, vibrancy and culture can be lost. This will provide a better experience.”

“Tourists will need to be more creative about where they stay and may be led to explore different cities. In the long term, I believe the ban will offer a richer experience for tourists and less animosity with locals, which ultimately is a good thing,” concludes Lucy Perrin.