Lisbon overturns short-term rental rules that failed to cut housing costs
Summary
Lisbon, Portugal is overturning strict short-term rental restrictions after they failed to make housing more affordable and actually increased prices. This is a cautionary tale for hosts as it demonstrates that limiting STRs can backfire. Hosts should stay informed about local regulations and advocate for balanced solutions.
Key Insights
- •In New York City, the de facto ban on short-term rentals since 2023 hasn't increased housing availability or affordability, with vacancy rates unchanged and rents continuing to rise, despite Airbnb short-term listings dropping by approximately 92 percent.
- •In Lisbon, the annual growth rate of house sale prices nearly doubled, and rental prices accelerated from 5.7% to 9.2% after short-term rental restrictions were imposed in 2019.
- •Hotel prices in Lisbon increased by 30% between 2022 and 2024.
Action Items
- ✓Hosts should monitor how local regulations impact housing costs and potentially advocate for policies that consider a holistic approach to affordability.Effort: mediumImpact: medium
Common Mistakes
- ⚠Failing to understand the impact of local regulations on the market could lead to missed opportunities and decreased profitability.
More from Regulations & Compliance
Carson City, Nevada, is refining its short-term rental regulations. City supervisors are currently reviewing and modifying the local ordinance during a retreat. This review aims to address operational aspects, potentially impacting local hosts through new or revised rules, emphasizing compliance.
A 21-unit vacation rental in Dunedin, Florida, has been approved, signaling potential growth in the local short-term rental market. This approval could lead to increased accommodation options for tourists visiting the area. This news could also influence local regulations.
St. Louis aldermen have approved a short-term rental fee, though a legal battle over existing rules continues. This indicates a focus on regulating the STR market within the city. Hosts in St. Louis should be aware of these new fees, which may impact their profitability. Find out how this affects your STR business.
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