Why Cities Around the World Are Cracking Down on Airbnb
Airbnb is facing growing regulatory pressure as cities from Barcelona to Bangkok tighten rules on short-term rentals. The crackdown reflects a wider concern that large numbers of tourist apartments can reduce long-term housing supply, disrupt residential neighborhoods and create enforcement problems. For property owners, investors and hospitality businesses, the message is increasingly clear: short-term rentals are becoming a more regulated business.
Housing is at the centre of the dispute. Critics argue that when the apartments earn more from tourists than from long-term tenants, landlords have an incentive to remove homes from the residential market. The effect can be particularly serious in cities already facing high rents and limited housing supply.
Barcelona has taken one of the strongest positions. The city plans not to renew its existing 10,101 holiday-rental licences when they expire in 2028. Municipal documents say the policy is intended to return more than 10,000 homes to regular residential use. Barcelona has also used its tourist-accommodation planning system to restrict further growth in areas under housing pressure.
Spain’s national government has also moved against unlicensed tourist accommodation. In 2025, its consumer affairs authorities ordered Airbnb to block 65,935 listings that violated regional advertising requirements. The authorities said many listings lacked the required license or registration numbers, while some used unverifiable or nonexistent numbers. A Spanish court upheld the government’s action in part and ordered the immediate removal of 5,800 listings.
The issue is not confined to Spain. Japan’s 2018 Minpaku framework limits many private short-term rentals to 180 nights a year, while local governments can introduce additional restrictions. In other destinations, rules vary considerably by city and property type. That makes compliance increasingly important for owners who operate in several markets.
The regulatory debate is also affecting property investment. Governments are becoming more cautious when homes bought primarily for investment are then converted into tourist accommodation. Greece, for example, has introduced restrictions on short-term rentals involving properties acquired through its residency-by-investment programme. The broader concern is that investment schemes can add to housing pressures when properties are removed from the ordinary rental market.
For local residents, housing is only part of the problem. Short-term rentals can also bring noise, overcrowding, security concerns and frequent turnover of occupants. These problems are particularly sensitive in apartment buildings and established residential neighborhoods, where residents may have little control over who is staying next door.
Airbnb has responded with measures aimed at reducing disruptive behaviour, including a global ban on parties and restrictions designed to prevent high-risk bookings. Such measures can reduce some problems, but they do not resolve the larger question of whether cities have enough housing for residents when tourist demand is strong.
The crackdown also creates risks for hosts and guests. Fake listings, phishing attempts, requests for payment outside the platform and misleading property descriptions can turn a holiday booking into a financial dispute. As regulation increases, consumers are likely to place greater value on licensed accommodation and established hotel operators.
For hotels and traditional hospitality businesses, tighter short-term rental rules could create an opportunity. If some Airbnb supply disappears from heavily regulated markets, travellers still need places to stay. Hotels, serviced apartments and professionally managed accommodation may gain business, particularly where they can offer reliable standards and clear regulatory compliance.
The implications extend beyond Europe. Property investors and hospitality operators in the Middle East, Central Asia and Asia-Pacific should not assume that today’s relatively permissive rules will remain unchanged. Housing affordability, tourism growth and pressure from local residents can quickly change political calculations.
The Airbnb backlash is therefore less about one company than about how cities manage the competing demands of tourism, housing and local communities. Short-term rentals are unlikely to disappear, but the period when they could expand with limited oversight is ending. For owners and hospitality businesses, understanding local rules and building compliance into the business model is becoming as important as attracting guests.
