Oxford Economics: 0.5% of EU homes are short-term rentals

A study by Oxford Economics, commissioned by Airbnb, highlights the positive impact that short-term rentals have on the economy and employment across the EU.

The Oxford Economics study

According to the study:

** Travelers staying in short-term rentals in EU countries contributed €149 billion to local economies in 2023.

** Supported 2.1 million jobs

** Generated €40 billion in total tax revenue

Rural areas have benefited the most from the short-term rental market, with 55% of guests staying outside major cities in 2023.

This trend is steadily increasing: the number of short-term overnight stays in rural locations has doubled since 2020.

Short-term rentals have made travel in the EU more affordable

Beyond local economies, short-term rentals allow everyday people to travel in Europe affordably, especially during major events.

According to Oxford Economics, platforms like Airbnb reduced the average price of a night’s stay (whether in a hotel or a short-term rental) by €7 in major EU destinations by 2023.

During major events, such as this summer’s Paris Olympics, local hosts who listed their homes on short-term rental platforms helped make accommodation cheaper for travellers. At the same time, they shared the financial benefits with local families and businesses.

This flexible and affordable accommodation option is popular among European travellers, especially those travelling with their families.

In the EU, 67% of short-term rental stays were made by Europeans, and families with children accounted for almost four in 10 bookings (39%).

Airbnb is not responsible for housing shortages

The study also disputes accusations that short-term rentals have a negative impact on housing supply and overtourism issues in urban centers.

According to Oxford Economics, homes available through Airbnb in Lisbon, Barcelona, ​​Madrid, Paris, Berlin and Amsterdam do not exceed 0.5% of the local housing supply.

The study estimates that if all Airbnb listings were returned to the housing market, local house prices in these cities would fall by less than 0.7%.

“Over the years, short-term rentals have become a popular solution for many everyday European families, as they travel affordably across Europe. By staying in a country home, these travelers discovered new neighborhoods and landscapes,” said Juliette Langlais, EMEA Public Affairs Director at Airbnb, adding: “By steering tourists away from busy urban destinations where hotel tourists flock, short-term rentals have shared the benefits of tourism with local families and businesses in countless rural destinations.”

Restrictions have not yielded any benefits

While Oxford Economics believes that the impact of short-term rentals on housing is minimal and limited to specific neighborhoods, excessive and untargeted restrictions in some European cities have failed to address local challenges:

** In Paris, a de facto ban on short-term second home rentals has failed to prevent the rise in average rents and property prices, which have risen by 21% and 15% respectively since the current rules on short-term rentals were implemented six years ago.

** In Amsterdam, the number of tourist nights has increased by 12% since 2019 despite the introduction of strict rules limiting short-term rentals to a maximum of 30 days per year for the entire city and a corresponding 50% reduction in the number of stays in furnished tourist accommodation. Hotels have thus benefited from the closed tourist stays in Amsterdam at the expense of local families.

Such disproportionate short-term rental regulations, the report highlights, have also brought about negative side effects at the local level, including the loss of economic opportunities for local hosts and businesses. These regulations create a significant increase in the cost of accommodation, undermining the ability of everyday Europeans and families to enjoy these destinations, the study notes.

In Amsterdam, Oxford Economics estimates a loss of €269 million in overall host profits from the implementation of current short-term rental regulations. This is millions of euros that are no longer going into the pockets of everyday hosts and small businesses, often to the benefit of large hotel chains.

In Paris, the average price of a hotel night has increased by 77%, despite the addition of almost 4,000 new hotel rooms in six years.

Sustainable tourism and short-term rentals

The report shows that short-term rentals are not the main driver of local challenges, such as housing shortages and overtourism. Airbnb believes that local regulatory responses should be evidence-based and targeted to neighborhoods where there is a clear need, while preserving the benefits that short-term rentals bring to locals and travelers.

“Short-term rentals are part of the solution to building a more sustainable tourism that preserves the right of residents in European Union countries to live, host, and travel affordably across Europe. Let’s keep them going,” said Langlais.

Airbnb has supported new rules coming to the EU to ensure that authorities have the data they need to make informed policy decisions that preserve short-term rental opportunities for local hosts, travelers, and destinations.